Mogo Finance successfully places EUR 25 million tap on existing 9.50% corporate bond 2018/2022

Riga, Latvia, 9 November 2018. Mogo Finance and its group companies (the “Group”), specialized in used car financing, is pleased to announce the successful placement of the tap issue of its 9.50% corporate bond 2018/2022 (XS1831877755) at par plus accrued interest. The Holding Company of the Group, Mogo Finance, issued today EUR 25 million of bonds with an annual interest rate of 9.50% to institutional investors by way of private placement. The issue was comfortably oversubscribed. Settlement is expected to take place on 16 November 2018. The bonds will be listed on the regulated market of the Frankfurt Stock Exchange shortly after settlement, subject to final approval of the prospectus by the CSSF in Luxembourg.

After the tap issue, the total amount outstanding of Mogo Finance’s 9.50% corporate bonds 2018/2022 (XS1831877755) amounts to EUR 75 million.
KNG Securities LLP, ABG Sundal Collier AB, Bankhaus Scheich Wertpapierspezialist AG, BlueOrange Bank AS, Gottex Brokers SA and STX Fixed Income B.V. accompanied the transaction. Aalto Capital acted as financial advisor and global coordinator to the Group.

Edgars Egle, CEO of the Group, commented:

“We are pleased to see our investor base expanding with this successful tap issue of our Eurobond. This tap shows deep investor support and understanding of our ambition to improve Mogo Finance profitability by continuous financial cost optimizing among other initiatives and actions. Tap proceeds will be used to refinance existing more expensive loans from a peer to peer marketplace, so-called Mintos debt. This tap issue and benefits it brings to Mogo Finance is a boost to our abilities towards strengthening the leading position in European second-hand financing sector.”

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Notes to Editors:

Mogo Finance is one of largest and fastest growing secured used car financing companies in Europe. Recognizing the niche in used car financing underserved by traditional lenders, Mogo Finance has expanded its operations to 12 countries issuing over EUR 320 million up to date and running a net loan portfolio over EUR 130 million. Mogo offers secured loans up to EUR 15,000 with maximum tenor of 84 months making used car financing process convenient, both for its customers and partners. Wide geographical presence makes Mogo unique over its rivals and diversifies revenue streams.
Mogo Finance operates through its own branch network, more than 1,500 partner locations and strong online presence. Physical footprint makes Mogo Finance top of mind brand in used car financing. Established in 2012, headquartered in Riga, Latvia and operates in: Latvia, Estonia, Lithuania, Georgia, Poland, Romania, Bulgaria, Moldova, Albania, Belarus, Armenia and Ukraine.
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IMPORTANT INFORMATION

The information contained herein is not for release, publication or distribution, in whole or in part, directly or indirectly, in or into the United States, Australia, Canada, Hong Kong, Japan, New Zealand, South Africa or any other countries or otherwise in such circumstances in which the release, publication or distribution would be unlawful. The information contained herein does not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of, the bonds in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration, exemption from registration or qualification under the securities laws of any such jurisdiction. Persons into whose possession this announcement may come are required to inform themselves of and observe all such restrictions. None of Mogo Finance, KNG Securities LLP, ABG Sundal Collier AB, Bankhaus Scheich Wertpapierspezialist AG, BlueOrange Bank AS, Gottex Brokers SA and STX Fixed Income B.V. or their respective representatives accept any legal responsibility for any violation by any person, whether or not the persons contemplating investing in or divesting Mogo’s securities, including the bonds, are aware of such restrictions.
This announcement does not constitute an offer of securities for sale in the United States. The bonds have not been and will not be registered under the Securities Act or under the applicable securities laws of any state of the United States and may not be offered or sold, directly or indirectly, within the United States or to, or for the account or benefit of, U.S. persons except pursuant to an applicable exemption from, or in a transaction not subject to, the registration requirements of the Securities Act.
This announcement constitutes advertising material and is meant as preliminary information about an upcoming securities offering by the Issuer for sounding general investor interest. This document in particular does not constitute a prospectus for the purposes of Directive 2003/71/EC, as amended (the “Prospectus Directive”) and does not constitute a public offer of securities in any member state of the European Economic Area (the “EEA”).
This announcement does not constitute an offer of bonds to the public in the United Kingdom. No prospectus has been or will be approved in the United Kingdom in respect of the bonds. Accordingly, this announcement is not being distributed to, and must not be passed on to, the general public in the United Kingdom. The communication of this announcement as a financial promotion may only be distributed to and is only directed at (i) persons who are outside the United Kingdom or (ii) investment professionals falling within Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (the “Order”) or (iii) high net worth companies, and other persons to whom it may lawfully be communicated, falling within Article 49(2)(a) to (d) of the Order (all such persons in (i), (ii) and (iii) above together being referred to as “Relevant Persons”). Any invitation, offer or agreement to subscribe, purchase or otherwise acquire such securities will be engaged in only with, Relevant Persons. Any person who is not a Relevant Person should not act or rely on this announcement or any of its contents.

PROFESSIONAL INVESTORS ONLY – Manufacturer target market (MIFID II product governance) is eligible counterparties and professional clients only (all distribution channels). No PRIIPs key information document (KID) has been prepared as the bonds do not constitute packaged products and will be offered to eligible counterparties and professional clients only.