Loans issued by Mozipo in Romania now available on Mintos

05.10.2017

mintosblog

Well known for being one of Lithuania’s biggest online consumer lenders, Mozipo Group is expanding their presence on the Mintos marketplace by offering to invest in personal loans issued in Romania.

Mozipo Group has been operating for more than a decade and has established a strong reputation for being reliable, transparent and a responsible non-bank financial institution. Currently, Mozipo Group works in Denmark, Lithuania and Romania, and plans to expand to five additional markets in the near future.

Since Mozipo Group joined the Mintos marketplace in March 2017 with loans issued in Lithuania, more than EUR 5.3 million of those have been funded through Mintos.

“We find Mintos marketplace a convenient and flexible tool to grow the portfolio. We are happy to work with the team of professionals who are aware of the needs of fast-growing fintech companies. So, now that we are confident about funding, we can concentrate on the core business and enter new markets,” says Mozipo Group CFO Aušrius Banaitis.

Romanian-issued Mozipo Group loans on the Mintos marketplace will range from EUR 22 to 3300, with a repayment period of up to five years. The average net annual return to investors is expected to range from 9 to 14%. Initially, the loan originator will list loans in euro; loans denominated in Romanian lei (RON) will be added to the Mintos marketplace soon.

Mozipo Romania will offer a buyback guarantee for loans that are delinquent for more than 60 days. The obligations of Mozipo Romania will be guaranteed by Mozipo Group. The company prides itself on the use of efficient technologies and has a unique risk scoring system, reducing the number of non-performing loans issued. The share of non-performing loans of Mozipo Romania historically is below 20%.

To retain its skin in the game, Mozipo Romania will keep at least 10% of each loan on the Mintos marketplace on its balance sheet.

Since its inception, Mozipo Group has served more than 230 000 customers. The typical client of Mozipo is a 36-45-year-old city resident with an average monthly income. The loans are primarily used to cover daily and unexpected expenses. The company has issued 660 000 loans worth over EUR 135 million.

In 2016, Mozipo Group earned EUR 3.9 million in revenue, with a net profit of EUR

526 000. Their loan portfolio was EUR 9.3 million.

Mozipo Group started operations in Romania in April 2015. Loans worth more than EUR 1 million have been issued to date.

See more information about the performance of Mozipo Group in this presentation.

To obtain exposure to Mozipo Romania loans, investors will be able to invest in loans issued by Mintos Finance, a Mintos group company, to Mozipo Romania where repayments depend on the borrower’s payments. Each loan issued by Mintos Finance to Mozipo Romania will be pegged to a respective loan issued by Mozipo Romania to the final borrower. A detailed description of the structure is available in the Mintos Finance loan agreement and assignment agreement.

Reap the benefits of Mozipo Group’s forward-thinking business structure by investing in its loans. If you use Auto Invest on the Mintos marketplace and want to invest in Mozipo loans issued in Romania, make sure to adjust your Auto Invest settings accordingly.

Comments

  • YFL

    Hi,

    I have just tried to find the part specifying the process of “loan pegging” in the assignement agreement but, unfortunately, I wasn’t able to find it. Could you kindly tell me where to find it?
    Additionally, as I am a complete layman when it comes to legal matters could you please explain to me what the differences are between loan contract, loan agreement and assignment agreement?

    Thank you very much.

    Kind regards,
    Yannick

    • Hi Yannick,

      “Loan pegging” is not described in assignment agreement as this agreement assigns claims from Mintos Finance to investors.

      The loan agreement – https://s3.eu-central-1.amazonaws.com/mintos-prod-public-files/81A46E6D-E45F-50B0-2AF0-F90CAD1E9DF3.pdf – shows that there is a respective claim from Mozipo to borrower against which Mintos Finance has issued loan to Mozipo. Info on this loan is portrayed the regular way in loan details.

      We had misleading name in blog post. We changed it. There is only loan agreement and assignment agreement in the structure.

      Let us know if you have any additional questions.