Eleving Group improves profitability and informs about redeeming the outstanding subordinated bonds

Eleving Group, a Baltic-headquartered fintech company operating in vehicle and consumer financing segments across 16 countries, is notifying holders of subordinated unsecured bonds 2021/2031 (ISIN XS2427362491) of its intention to redeem the outstanding bonds on November 29, 2024.

According to Eleving Group’s estimates, the redemption of the subordinated unsecured bonds 2021/2031 (ISIN XS2427362491) will have an immediate positive effect on its consolidated balance sheet, resulting in close to EUR 2 mln in annual cost savings and in further improvements on the Group’s profitability.

Eleving Group shall redeem the bond in cash at a price per bond equal to 101% of the current outstanding amount, together with accrued but unpaid interest, in accordance with Condition 5.2 of the Terms and Conditions (Early voluntary redemption by the Issuer (Call Option)) on the respective bond prospectus. The redemption amount will be paid to the holders holding the bonds on the Record Date, i.e., one (1) Business Day prior to the Redemption Date (29 November 2024).

“We are delivering on our promises and are putting IPO net proceeds to productive use right away. This exercise marks another successful bond repayment, where our bond investors have been able to enjoy excellent investment returns,” explains Modestas Sudnius, the CEO of Eleving Group.

As communicated before and during the IPO, Eleving Group intends to further improve the profitability of the business and optimize its balance sheet.

Call Option Notice is available here: https://www.eleving.com/sub-bonds-call-option-notice

About Eleving Group 

Eleving Group has driven innovation in financial technology around the world since its foundation in Latvia in 2012. As of today, the group operates in 16 markets and 3 continents, encouraging financial inclusion and upward social mobility in underserved communities around the globe. Eleving Group has developed a multi-brand portfolio for its vehicle and consumer finance business lines, with around 2/3 of the portfolio comprising secured vehicle loans and mobility products, with Mogo as the leading brand, and around 1/3 of the portfolio including unsecured consumer finance products. Currently, 55% of the group's portfolio is located in Europe, 32% in Africa, and 13% in the rest of the world. 

The Group's historical customer base exceeds 1.3 million customers worldwide, while the total volume of loans issued goes beyond EUR 1.8 billion. With headquarters in Latvia, Lithuania, and Estonia and a governance structure in Luxembourg, the Group ensures efficient and transparent business management, powered at the operational level by over 2800 employees. For two consecutive years, the Group was listed among Europe’s 1000 fastest-growing companies, as published by the Financial Times in 2020 and 2021. 

The Group closed 2023 with strong financial results—its adjusted EBITDA stood at EUR 77.5 million, revenue at EUR 189.3 million, and adjusted net profit at EUR 24.5 million. Eleving Group’s net portfolio reached EUR 320.3 million. In 2024, Fitch, a leading credit rating agency, upgraded Eleving Group's rating from B- to B with a stable outlook.