Changes to the legal structure of Metrokredit

19.09.2019

mintosblog

Metrokredit loans have been available on the Mintos marketplace since June of last year. Previously, they were offered by the legal entity Metrofinance and issued through the Metrokredit brand.

Recently, Metrokredit acquired Metrofinance. As a result, Metrofinance’s consumer lending business, along with its existing portfolio was transferred to Metrokredit. 

As part of the acquisition, Metrofinance’s operations have been brought under the Metrokredit brand and now the legal entity and the brand are both named Metrokredit (LLC “МFС Metrocredit”). 

Following the acquisition, Metrokredit has significantly expanded its business, with its issued loan portfolio growing by EUR 500,000 month-on-month as of June 30, reaching a total issued of EUR 10.7 million. 

The main goal for Metrokredit in the next six months to one year is to be in the top three market leaders in the unsecured consumer lending business in Russia. 

As of June 30, 2019, Metrokredit had a gross loan portfolio of EUR 10.72 million, an outstanding net portfolio of EUR 5.5 million and total assets of EUR 6.4 million. In addition, the loan originator has a large share capital of EUR 1.1 million.

As a result of the business transfer from Metrofinance to Metrokredit, the company (Metrokredit) has also obtained Metrofinance’s losses that the company plans to recover with its strong performance in upcoming months.  

What does this mean for Mintos investors? 

Overall, this change has little impact on Mintos investors. Nonetheless, we wanted to highlight that the legal entity placing Metrokredit loans on the marketplace has changed.

Your investments have not been affected in any way. Mintos Finance loans will be directly secured by a pledge on claims arising from Metrokredit loans issued to borrowers. The loan portfolio is managed by Metrokredit. The loan originator has a Mintos Rating of B-.

Mintos and Metrokredit are related parties according to IAS 24.