New structure for investments in Mogo loans issued in Latvia



Starting from December 14, 2017, there will be a new structure for investing in Latvia-issued Mogo loans on the Mintos marketplace. The change has been employed to ease the administrative burden imposed by the state authorities on similar credit providers licensed in Latvia.

How will the new process work?

To obtain exposure to Mogo loans issued in Latvia, investors will be able to invest in loans issued by Mintos OU to Mogo’s legal entity in Latvia — AS “mogo”, where repayments depend on the final borrower’s payments. Each loan issued by Mintos OU to Mogo will be pegged to a respective loan issued by Mogo to the final borrower.

Mintos OU is a Mintos group company. A detailed description of the new structure is available in the Mintos OU loan agreement and assignment agreement.

How will the new structure affect investors?

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

Because investments made will still be pegged to the loan performance of loans issued by Mogo, current Auto Invest functions for investing in Mogo loans will remain valid for loans placed on the Mintos marketplace under the new structure. If the change in investment structure affects your investment preferences, please be sure to adjust your Auto Invest settings accordingly.

About Mogo

With a total of more than EUR 300 million in loans originated since the company was founded in 2012, Mogo Group is the largest non-bank car loan provider in the region, with operations in Latvia, Lithuania, Estonia, Georgia, Poland, Bulgaria, Romania, Armenia and Moldova. Mogo is one of the top loan originators on the Mintos marketplace. The company joined Mintos in March 2015 and has since funded car loans worth EUR 78 million through the marketplace.

Please feel free to contact us if you have any questions. We will be more than happy to assist you!


  • Robert Campion

    Hi, in the case where a Loan Originator goes bankrupt, does this new structure expose the investor to more risk ?

    Previously, Mintos would manage the final borrowers in the event of an Originator going bust, now it appears the Originator (or will have a Liquidator appointed etc. ) can decide whether to pay back the investors on Mintos (Or not) and the investors do not have a direct claim against the final borrowers.

    • Hi Robert,

      Latvian Mogo loans have commercial pledge on the loans, so they are secured within the bankruptcy estate and do not become part of bankruptcy estate.

  • Anonymous

    How would the secured part of it be allocated to different secured creditors? For example, if 10 people invest in a secured loan. In the event of originator bankruptcy, this loan serves as collateral only for those 10 investors right? Or does the entire pool of secured collateral have to be shared with all secured investors.

    • Investors are the secured creditors with loans issued to final borrowers as pledge (loans in amount at least as much as investors have invested in or slightly more). In case of unlikely bankruptcy investors would be allocated the collateral based on their investment made.