IUTE GROUP ISSUES EUR 140 MILLION NEW SENIOR SECURED EUR 2025/2030 BONDS – Strong demand from existing investors and new subscriptions

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IUTE GROUP ISSUES EUR 140 MILLION NEW SENIOR SECURED EUR 2025/2030 BONDS

Strong demand from existing investors and new subscriptions

Tallinn, Estonia, 30 May 2025. IuteCredit Finance S.à r.l., a subsidiary of Iute Group AS, a leading European financial group, today successfully issued new Senior Secured EUR 2025/2030 Bonds with an interest rate of 12% for a total volume of EUR 140 million. The partial refinancing of around EUR 78 million of the EUR 2021/2026 Bonds has thus been completed ahead of schedule.

With lively demand from existing investors for the exchange of their EUR 2021/2026 Bonds amounting to around EUR 52.5 million, new subscriptions totaled around EUR 87.5 million. Institutional investors from Europe and the United States thereby signaled broad support for the issue of the new Senior Secured EUR 2025/2030 Bonds. Private investors subscribed to bonds with a volume of around EUR 11 million.

Tarmo Sild, CEO of Iute Group AS: “Firstly, we would like to thank our existing investors for their continuous support, which resulted in the successful exchange of EUR 2021/2026 Bonds for EUR 2025/2030 Bonds worth around EUR 52.5 million. Secondly, we would like to thank and welcome our new investors from Europa and the United States, both institutional and retail, for contributing to Iute Group’s growth on attractive terms. The increase in the EUR 2025/2030 Bonds coupon to 12% reflects the new reality since 2021: Euribor has risen by more than 2 percentage points and yields on US Treasury bills have gained more than 3 percentage points. We at Iute are therefore grateful that the cost of funding has decreased relative to the overall price of capital and that investors' trust remains strong. Iute Group now has stabile capital structure until 2030, thanks to the hard work of the entire Iute team across all Iute countries. We intend to continue issuing bonds in line with our customers' growth requirements in the future. Meanwhile, we are continuing to build our ecosystem, loan portfolio and other value streams, supported by strong profitability.”

Settlement is scheduled for or around 6 June 2025. The new EUR 2025/2030 Bonds are expected to be admitted to trading on the Regulated Market of the Frankfurt Stock Exchange (General Standard) and the Baltic Regulated Market of the Nasdaq Tallinn Stock Exchange on or around 9 June 2025.

Holders of the EUR 2021/2026 Bonds who have elected to exchange their Bonds for new Senior Secured EUR 2025/2030 Bonds will receive a cash premium of EUR 2.50 per Bond exchanged, plus accrued and unpaid interest in cash from 6 April 2025 until the Settlement Date. Bondholders who have elected to tender their Bonds for cash consideration will receive EUR 99.00 per Bond, plus accrued and unpaid accrued interest in cash from 6 April 2025 until the Cash Settlement Date. Settlement of the Bonds tendered for cash consideration will take place on or around 16 June 2025.

Oppenheimer & Co. Inc (New York / London) and AS LHV Pank (Tallinn) are acting as Joint Lead Managers and Joint Bookrunners as well as Signet Bank AS (Riga) as Co-Manager and Bankhaus Scheich Wertpapierspezialist AG (Frankfurt/Main) as Sales and Listing Agent. Aalto Capital (Munich) acts as financial advisor to Iute Group.

Contact:

Kristel Kurvits, Group Chief Financial Officer (CFO)
Email: investor@iute.com
Phone: +372 622 9177

About Iute Group:

Iute Group AS is a fintech company established in 2008 in Estonia. The Group specializes in consumer finance, payment services, banking, and insurance products. It serves customers in Albania, Bulgaria, Moldova, and North Macedonia. Iute Group finances its loan portfolios with equity, deposits, and secured bonds on the Regulated Market of the Frankfurt Stock Exchange and the Nasdaq Baltic Main List.

www.iute.com

IMPORTANT INFORMATION

The information contained herein is not for release, publication or distribution, in whole or in part, directly or indirectly, in or into the United States of America, Australia, Canada, Hong Kong, Japan, New Zealand, South Africa or any other countries or otherwise in such circumstances in which the release, publication or distribution would be unlawful. The information contained herein does not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of, the bonds in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration, exemption from registration or qualification under the securities laws of any such jurisdiction. Persons into whose possession this announcement may come are required to inform themselves of and observe all such restrictions.

This announcement does not constitute an offer of securities for sale in the United States of America. The bonds have not been and will not be registered under the United States Securities Act of 1933, as amended (the “Securities Act”) or under the applicable securities laws of any state of the United States of America and may not be offered or sold, directly or indirectly, within the United States of America or to, or for the account or benefit of, U.S. persons (as defined under Regulation S under the Securities Act) except pursuant to an applicable exemption from, or in a transaction not subject to, the registration requirements of the Securities Act.

This announcement does not constitute a prospectus for the purposes of Regulation (EU) 2017/1129 of the European Parliament and of the Council of 14 June 2017 on the prospectus to be published when securities are offered to the public or admitted to trading on a regulated market (the “Prospectus Regulation”) and does not constitute a public offer of securities in any member state of the European Economic Area (the “EEA”).

This announcement does not constitute an offer of bonds to the public in the United Kingdom. No prospectus has been or will be approved in the United Kingdom in respect of the bonds. Accordingly, this announcement is not being distributed to, and must not be passed on to, the general public in the United Kingdom. The communication of this announcement as a financial promotion may only be distributed to and is only directed at (i) persons who are outside the United Kingdom or (ii) investment professionals falling within Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (the “Order”) or (iii) high net worth companies, and other persons to whom it may lawfully be communicated, falling within Article 49(2)(a) to (d) of the Order (all such persons in (i), (ii) and (iii) above together being referred to as “Relevant Persons”). Any invitation, offer or agreement to subscribe, purchase or otherwise acquire such securities will be engaged in only with, Relevant Persons. Any person who is not a Relevant Person should not act or rely on this announcement or any of its contents.