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New structure for investments in Hipocredit loans

20.10.2016

mintosblog

We would like to inform you that there is a new structure for investing in Hipocredit loans. Hipocredit has extended its license for providing consumer credit services in Latvia for an indefinite period of time. The new structure takes into account limitations imposed by the license.

How will the new process work?

To obtain exposure to Hipocredit loans, investors will be able to invest in loans issued by Mintos Finance to Hipocredit where repayments depend on the borrower’s payments. Each loan issued by Mintos Finance to Hipocredit will be pegged to a respective loan issued by Hipocredit to the final borrower.

The new structure will apply only to new loans Hipocredit issues to private individuals. For loans issued to companies the investment structure does not change.

Mintos Finance is a Mintos group company.

A detailed description of the new structure is available in the Mintos Finance loan contract and assignment agreement.

How will the new structure affect investors?

Investors making investments according to the new structure will henceforth gain exposure to Hipocredit-issued loans. Previously investors had direct claim against the final borrower; now investors will have a direct claim against the loan originator – in this case, against Hipocredit.

Taking into account that these changes affect the investment risk profile, Hipocredit loans will be removed from all current Auto Invest settings. To continue using the Auto Invest function to invest in Hipocredit loans, please renew your corresponding Auto Invest portfolio settings.

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