Mintos launches €20m fractional bonds offer
Mintos has launched a €20m (£17.2m) fractional bonds offer from Latvian manufacturing firm iCotton that its investors can participate in with as little as €50.
The European lending marketplace unveiled its fractional bond product in October this year, enabling investors to add corporate bonds to their portfolios.
“Private placement is a unique opportunity for investors on Mintos, as private placement investment is traditionally only open to individual investors with hundreds of thousands of euros to invest,” Mintos said. “iCotton bonds are exclusive to Mintos in the form of fractional bonds, starting at just €50. This is our first fractional bonds offer linked to a major manufacturing company. This offer further allows investors to diversify their portfolio, as iCotton is a completely new industry to investors on Mintos.”
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iCotton Group manufactures hygiene and cosmetic products, with a particularly strong presence in Poland and the Baltic States. In the first 9 months of 2023, iCotton Group reported revenues of more than €50m and core earnings of almost €8m.
It will issue €20m in private senior secured bonds, with a maturity of three-and-a-half years.
They will have a bullet repayment structure, where the principal that is borrowed is paid back at maturity.
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The bonds have an annual interest rate of six per cent + 3m Euribor, which Mintos said brings the return to 9.975 per cent for the first calculation period. Interest is paid quarterly.
The investment offer for iCotton fractional bonds on Mintos ends on 15 December.