Debitum Network originator launches new ABS program offering 11.25pc interest
Debitum Network has announced that Flexidea Polska, a subsidiary of its originator Flexidea, has launched a €292,000 (£251,350) asset-backed securities (ABS) program.
The European peer-to-peer lending marketplace said that there is €261,000 available for investment in the program, which comprises 43 small- and medium-sized enterprise loans.
The ABS program has a term of six months and offers annual returns of 11.25 per cent.
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The loans in the program are secured with invoices from Polish and international companies. They also have a buyback obligation and a Flexidea group guarantee.
There is a 10 per cent penalty fee for borrowers, in case of late repayment.
Debitum said that investment fund Helenos recently acquired a 14.67 per cent stake in Flexida, with the aim of expanding its activities into other EU countries. Its subsidiary Flexidea Polska subsequently started operations in Poland and Debitum said that the company “shows impressive growth results”.
“The total amount of invoices financed in the first year has reached €10.5m (£8.6m) (zł43.23m and €0.82m) with an average financed invoice amount of €7,300 (financed 1,450 invoices). The current outstanding portfolio is €2m,” said Sergei Demchuk, chairman of the Supervisory Board at Flexidea.
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“What’s even more important – in July 2023 Flexidea Polska reached a break-even point in its operations.”
Debitum chief executive Henrijs Jansons heralded the performance of Flexidea Polska, adding that “the success and growth of Debitum business partners’ is a foundation for secure yet also high-yielding investments of our investors”.
“The next investment round from Flexidea Polska is open, therefore I invite Debitum investors to join Flexidea growth story and benefit from it,” he added.
Flexidea is preparing to launch a subsidiary in Romania by the end of the year.
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