Mintos adds new notes to its marketplace
Mintos has added new notes to its platform from originator Eleving Group’s Romanian and Moldovan businesses.
The European lending marketplace has classified both lending companies’ notes as five out of seven on the risk scale, meaning it is a medium-high risk class.
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Eleving offers vehicle leasing loans. Mintos investors who fund the notes will be purchasing exposure to a small pool of these loans, usually between six and 20.
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The notes offer a fixed rate of return based on the cashflows of the underlying loans.
Users will receive principal repayments and interest payments when borrowers make repayments, or when the lending company repurchases underlying loans in case the borrower is more than 60 days late.
Mintos forecasts returns of up to 11 per cent in a favourable scenario, if investors keep their money in the notes for five years.
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Mintos transitioned its business into regulated notes last year, which give investors better protection and transparency.
It had been working on transitioning its loan investment product into loan-backed securities since it secured its investment firm and electronic money institution licence in August 2021.
Under the new, regulated structure, Mintos investors are protected by the MiFID II investor protection framework. They will also have access to in-depth prospectuses about the notes, giving them increased transparency.
They are also protected by the investor compensation scheme, which provides compensation if Mintos fails to return financial instruments or investor funds to investors, up to a maximum of €20,000 (£17,200).