Today, September 29, 2020, MFO OnlineKazFinance LLP (Solva and MoneyMan brands), a member of the international IDF Eurasia group, successfully placed its 2 year bonds on the Astana International Exchange (AIX). The placement was made with a coupon of 19% per annum.
The issue volume is KZT 7 million with the coupon of 9% per annum. The nominal value of one security is $100, and payments are made on a quarterly basis. Freedom Finance JSC is the main organizer of the floatation of bonds.
During the first day of placement, bonds amounting to almost $ 5.6 million were placed.
Boris Batine, co-founder of IDF Eurasia, commented: “Implementing the strategy of expanding the presence of the IDF Eurasia group on the stock markets, we carried out our second placement in Kazakhstan; the first successful placement of bonds in tenge took place just a month ago at the Kazakhstan Stock Exchange (KASE), becoming the debut for the entire industry of microfinance companies. Today, on the first day of trading alone, we managed to raise over USD 5.6 million by placing more than 80% of the maximum available volume of securities. The placement showed a very high interest from both institutional and retail investors in bonds of quality issuers from the sector. Given this success, IDF Eurasia is planning a wide range of activities on the Kazakhstan stock market in 2021. The proceeds from the issue will be used to finance the development of the company’s current and promising products. ”
MFO OnlineKazFinance LLP is part of IDF Eurasia group, the largest online lending service in Russia and Kazakhstan, operating in these countries under the Moneyman and Solva brands. The company combines the use of advanced developments in decision-making with the principles of responsible lending.
At the end of Q1 2020, the company’s revenues increased to 3 billion tenge, showing a four-fold increase in annual terms. At the same time, the profit approximated to the results for the whole of 2019, amounting to 1.179 billion tenge only in the first half of 2020.
As of July 1, 2020, the loan portfolio of OnlineKazFinance amounted to 29 billion tenge, this figure is more than 5 times higher than in 2018.