Mogo issues bonds in the amount of 30 million euros

March 1, 2021

On March 1, 2021, AS “mogo” issued bonds in the amount of EUR 30 million, thus, successfully completing the largest bond issue in recent years by a private company on Nasdaq Riga Stock Exchange.

With an annual coupon rate of 11%, 3-year maturity and minimum subscription amount of EUR 1’000, the bonds were offered to existing Mogo bondholders and other retail and institutional investors from the Baltic region. The public offering consisted of two parts – subscription by new investors and exchange offer to existing bondholders.

Bond issue was comfortably oversubscribed with more than 840 investors participating in the offering.

Allocation results are as follows:

Investors	Nominal amount (% of issue size)	Number of investors
Existing bondholders	71.4%	181
New investors	28.6%	662

Geographic breakdown:

Country:	Nominal amount (% of issue size)
Latvia	73.3%
Estonia	17.7%
Lithuania	0.3%
Other	8.6%
TOTAL:	100%

Due to current bondholders’ exchange to new bonds, the LV0000801363 issue size will be decreased to EUR 5,979,000 and LV0000880029 decreased to EUR 2,602,000. Both bond issues will be repaid in full on maturity date – March 31, 2021.

Maris Kreics, CFO of Mogo Finance Group: “We received remarkable interest and demand from investors from all three Baltic countries, reaffirming investors’ belief in the sustainability of Mogo business model. We highly appreciate the trust of our loyal existing investors who participated in the exchange offer and welcome on board 662 new investors who have joined our investors` community. We feel great responsibility towards our wide international investor community and will continue our work on implementing our business strategy and maintaining high standards for operational transparency.”

Edmunds Antufjevs, Head of Corporate Finance at Signet Bank: “More than 70% of existing investors decided to continue their investments in Mogo, serving as an excellent proof of investors’ satisfaction with the company’s performance and investment experience. The success of Mogo bond offering highlights the strengthening Baltic retail investor base and potential of Baltic public bond offerings in the region.”

Daiga Auziņa-Melalksne, the Head of Nasdaq Baltic Exchanges: “It is great to see Mogo successfully achieving its fundraising target using capital markets services provided by Nasdaq Baltic. Mogo offering was the largest public offering by a private company during the last four years in Latvia.”

AS “mogo” is an experienced capital market participant and has been represented on the Baltic Regulated market since 2014. New bonds are planned to be included in the Regulated market – the Baltic Bond List of “Nasdaq Riga” stock exchange by March 31 at latest. “Signet Bank, AS” acted as the lead manager for the bonds` issuance.

About Mogo:

AS “mogo” is part of international FinTech Group – Mogo Finance. AS “mogo” offers classical finance lease, leaseback and long term rent available in the most convenient way for the customer – online, by phone and at more than 280 affiliated car dealerships. AS “mogo” has more than 13 thousand active customers in Latvia and EUR 26 million portfolio y2020.

Mogo Finance Group, keeping car lending business as predominant, also utilizes consumer lending in selective markets as a strategic capital allocation vehicle to leverage its performance and customer base. Recognizing the niche underserved by conventional lenders, Mogo Finance provides financial inclusion and disruptively changes the used car and alternative financing industry across its countries. Up to date the Company has issued over EUR 650 million secured loans and running a net loan and used car rent portfolio of EUR 202 million. Wide geographical presence and diversified revenue streams grant Mogo with unique scale and pace. Mogo Finance operates a multi-channel fintech approach through its own branch network, more than 2,000 partner locations and a strong online presence. Established in 2012, with headquarters in Riga, Latvia, Mogo Finance operates in 14 countries in Baltics and Europe with a strong focus on GDP-dynamic countries in Central, Eastern and South-Eastern Europe. Operating regions also include the Caucasus and Central Asia as well as Eastern Africa.