Riga, 2014-04-03 07:42 CEST (GLOBE NEWSWIRE) -- Largest pawnshop network of Latvia SIA ExpressCredit operating under brand Lombards24.lv has issued additional 2100 bonds of total value exceeding two million euros. This step means continuation of the successful first issue, when 5000 bonds valued at five million euros were issued for public trade.
“Second issue was a natural step within the long-term development of the company. Additional funding is necessary for long-term sustainable development in order to improve the quality of our services and the conditions regarding to the highest standards,” informs Agris Evertovskis, Chairman of the Board of SIA ExpressCredit.
On 2 April Council of the Financial and Capital Market Commission decided to registrer SIA ExpressCredit of bond prospectus and allowed to include in the Debt securities list of the Exchange ''NASDAQ OMX Riga'' 2100 company’s bonds at par EUR 1000 per total amount EUR 2 100 000. According to the regulations of the Issue SIA ExpressCredit shall be entitled to issue bonds for the total par value EUR 3 500 000 up to 5 December 2014 for the price at 100% of the par value together with the saved coupon up to the particular settlement day. Annual coupon interest rate is 15%. Unlike in the first issue, the second one lacks guarantee, therefore risk of investors shall be compensated by corresponding interest rates of the loan.
First issue resulted in attraction of five million euros for the development of the operation of the company, because initial par value of the issued bonds was 1000 euros. Annual coupon interest rate is 14% with five year term and gradual repayment. Term of clearance of the principal amount is also different, since bonds of the first issue shall be gradually cleared in five years, however, principal amount of the second issue shall be fully cleared in seven years starting with the fifth year.
Head of the company is sure that planed inclusion of the second issue bonds in the Exchange will increase recognition of SIA ExpressCredit in the market of regulated capital and amount institutional investors.
“The second issue of bonds will also provide opportunity of larger investments in development, and this will be in our customers’ benefit,” Chairman of the Board of SIA ExpressCredit is certain. He stresses that company will keep providing solutions relevant to its customers’ wishes and needs.
A. Evertovskis also informed that, according to SIA ExpressCredit estimates, size of the target audience of the pawnshop market segment in Latvia was approximately 500 000 people, in addition, currently annual increase of this segment by 3 - 5% is in progress.
“Every person without savings and credit line in bank is our potential customer. We provide opportunity to borrow comparatively small amounts of money, when other sources of financing are not available to the person due to any reasons. Nobody will apply in the bank for a 50 EUR credit with repayment period one week, but cases of shortage of similar amount for the abovementioned period are frequent. Nowadays there is still large number of people both in Latvia and whole Europe needing a short-time loan for solution of unforeseen situations and for living until the next payday,” explained head of SIA ExpressCredit.
In attachment prospectus.
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SIA ExpressCredit is a licensed non-bank lending institution, which was founded in the 2009. SIA ExpressCredit operates 95 branches under the brand name Lombards24.lv in 38 largest Latvian cities and towns, offering loans against pledge of movable property (Lombard credits), loans without collateral, loan against vehicle collateral and mortgage loans. The Company has provided services to more than 200 thousand customers. The owners of SIA ExpressCredit are SIA Express Holdings (51%), SIA Ebility (24,5%) and SIA AE Consulting (24,5%).
Contacts: Agris Evertovskis Chairman of the Board Tel: +371 28300664 Fax: +371 67809194 E-mail: agris.evertovskis@lombards24.lv
