Eleving Group announces issuance and settlement of EUR 25 million subordinated bonds

Riga, Latvia, 29 December 2021

Eleving Group (formerly known as Mogo Finance S.A.), a Latvian head-quartered leading provider of financial solutions in Central Europe, CIS & East Africa, has issued subordinated bonds in the amount of EUR 25 million with a maturity of ten years (ISIN: XS2427362491). The subordinated bonds were issued with an annual interest rate of 12.00% and term until 2031. The proceeds will be used to refinance existing shareholder loans and for further business growth.

Considering that the terms of the subordinated bonds are in line with Fitch’s ‘Corporate Hybrids Treatment and Notching Criteria (12 Nov 2020), Fitch gives 100% equity credit to the issued subordinated bonds. As a result, Eleving Group’s leverage (gross debt to tangible equity) ratio remains broadly unchanged, and all other Fitch’s qualitative and quantitative assessment factors of Eleving Group’s credit profile remain equally unaffected.

The new bonds are expected to be included on the Alternative Market of the Nasdaq Baltic First North within six months upon settlement.
Aalto Capital (Germany) acted as global coordinator and financial advisor to Eleving Group, Signet Bank AS (Latvia) as a sales agent.

Maris Kreics, Group CFO of Eleving Group, commented: “We are very grateful for the trust investors expressed once again in subscribing to our first-time subordinated bonds that will enjoy full equity credit both from our existing Eurobonds as well as rating agency’s perspective. This marks another very important milestone in 2021 as well as in our company’s history.”