SimpleFinance, a Russian online micro-lending platform targeting small and medium-sized businesses, yesterday announced a Eurobond issue of $30 million with results “fully in line with expectations.”
Launched in 2015, SimpleFinance is already profitable and self-financing, with its products enjoying high demand, the company’s press service told East-West Digital News. “But we intend to use this Eurobond to accelerate growth,” essentially to increase the company’s loan portfolio.
The issue will also allow SimpleFinance to diversify its capital structure and opens the door for future capital markets activities.
SimpleFinance offers several financing tools including factoring, asset-backed loans, unsecured loans (up to 3 million rubles, approximately $50,000), and tender loans.
SimpleFinance’s platform supports fully electronic document processing and online-only customer interactions. In addition, the company has built its own P2P-platform, called SimplyFi, for small and medium-sized businesses to raise funds directly from private investors.
The company competes with a number of banks or micro-finance organizations, but none of them has an identical product mix.
With a 3-year tenor and a coupon rate of 10.5% per annum, the issue is expected to be placed and settled on July 3. The issuer of the Eurobonds is SF Holdings Company PLC, the parent company of SimpleFinance, and the guarantor of the Eurobonds is SimpleFinance.
