OREANDA-NEWS. SIA “VIA SMS group”, one of Eastern Europe’s leading non-bank lenders, has issued bonds for a total of EUR 4 mio.

A total of 4,000 bonds with an initial nominal value of EUR 1,000 were issued. The coupon rate is 13% per annum over a 2-year term with repayment of the principal as a lump sum on maturity date - 25 August 2016. In accordance with the issue prospectus, SIA “VIA SMS group” may issue additional 12,000 bonds (total nominal value of EUR 12,000,000) by 18 August 2016. The bonds were assigned securities identification number (ISIN) LV0000801496 and the issue prospectus was registered by the FCMC on 10 December 2014.

As of 18 December 2014, the bonds of SIA “VIA SMS group”  are listed on the Nasdaq Baltic Bond List by “Nasdaq Riga”, where they will be available for free trading.

According to company management, the issue was organized in order to finance SIA “VIA SMS group” companies, intensifying lending to private individuals in all countries where the group is represented (as set forth in its strategy), as well as to refinance the group’s debt in the form of bonds and improve its cash flows and liquidity. Another advantage of the issue is increased recognition on the regulated capital market and among institutional investors.

SIA “VIA SMS group” and its 6 subsidiaries in Latvia and abroad are group of companies, whose core business is issuing, administrating and collecting consumer loans.

The company is one of the non-bank lending pioneers in Latvia. It began operating in 2009 and now continues to develop beyond Latvia. Despite several barriers to long-term business planning, group companies’ service more than 600 thousand clients, offering financial services to private individuals that enable them to settle everyday financial needs.

The issue of bonds was organised by Baltikums Bank AS. The bank’s specialists advised SIA “VIA SMS group” throughout the project, assisted it with preparing the prospectus, participated in talks with the FCMC, and ensured settlement with investors.

Since 2009, SIA “VIA SMS group” has become the second largest online lender in Eastern Europe, providing loans without collateral to individuals. It operates under the brands VIA SMS, VIA CREDIT and VIA CONTO, and offers loans for up to 12 months in Latvia, Lithuania, Czech Republic, Poland, and Sweden. VIA SMS Group has more than 600 000 registered clients and loans issued annually total EUR 45 mio.

According to audited financial statements for the first half of 2014, the consolidated turnover of SIA “VIA SMS group” (including its subsidiaries in Latvia, Lithuania, Poland, Czech Republic and Sweden) reached EUR 6.4 million, with a corresponding net profit of EUR 1.009 million.