Neo Finance launches bond offering to fund growth plans
Neo Finance has issued a new, private bond offering to raise money for its business expansion plans.
The Lithuania-headquartered alternative finance group, which operates a peer-to-peer lending platform, said that the first part of its bond offering was valued at €640,000 (£549,723) and was bought by six private investors.
The bonds, which have a nominal value of €10,000 each, have an annual interest rate of 10 per cent which is payable quarterly and are due on 23 June 2025.
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“One of the main goals of the company is continuous growth,” said Evaldas Remeikis, chief executive of Neo Finance.
“We believe that the raised funds will allow us not only to further expand Paskolų klubas, Neopay and FinoMark but also to increase sales volumes in all these business areas. We are prepared to attract more customers to successfully grow and thrive.
“Additionally, we believe that the raised funds will provide an excellent opportunity to leverage business potential and strengthen market positions.”
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The company is pledging a portfolio of consumer loans, worth at least 125 per cent of the nominal value of the bonds issued, as security for investors.
Neo Finance reported a bumper first quarter of 2023, which it said reflects “the continuous growth and successful operations of Neo Finance in all its business areas.”
First-quarter revenues grew by 28 per cent year-on-year to €1.01m, while core earnings rose by 130 per cent to €167,000.
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Its P2P lending platform Paskolų klubas facilitated €9.95m in the first quarter, a 41 per cent increase year-on-year.
Meanwhile, consumers using its payment solution Neopay conducted nearly 6.5 million transactions over the period, a 41 per cent increase on the previous year, Neo Finance said.
And its business lending platform FinoMark issued €1.5m of loans in the quarter, a three-fold increase from the same quarter last year.