Signet Bank successfully completes the subscription for the bonds of Sun Finance Group

  • 2019-08-23
  • Gunnars Kalns

Sun Finance Group has successfully closed the subscription period for its bond issue. The sole arranger for the issue was Signet Bank.

In its senior unsecured bond issue, Sun Finance Group has raised funds in the amount of EUR 10 million. The maturity of the bonds is August 20, 2021, with an annual coupon rate of 11% and quarterly coupon payment frequency. The bonds were offered exclusively to the clients of Signet Bank and institutional investors with minimum investment of EUR 50 000 per investor in the form of private placement.

Sun Finance Group is one of the fastest growing online consumer lenders in Europe, currently operating in five countries - Denmark, Kazakhstan, Poland, Latvia, and Mexico. Its data driven approach and use of latest technologies along with strong shareholder base and experienced management team have helped the Group build a sizeable and well-performing portfolio within a short time period. Its loan portfolio reached EUR 85 million at the end of July 2019.

Sun Finance Group will use the funds raised through the bond placement to finance further loan portfolio growth in existing and new markets and to diversify its funding sources.

“We are happy that Sun Finance Group has chosen us as the arranger for their first bond issue and pleased that the issue has been fully subscribed. This is the first bond issue that Signet Bank has organised for its clients, and in current market environment, we see fundraising through bond issuance a good alternative to traditional bank loans for many companies in Latvia. We are ready to participate in this process and see good potential for expanding this segment of our business,” says Roberts Idelsons, CEO of Signet Bank.

“This bond issue is an important milestone for the growth of Sun Finance Group and proves our successful development strategy. In a short time period, Sun Finance has managed to grow exponentially in three continents, achieve solid financial results and diversify its sources of funding. High investor interest in our bonds confirms that we are aiming in the right direction. We are grateful to Signet Bank for the successful collaboration on this bond issue, both in organisation of the issue, as well as in fund raising process,” says Toms Jurjevs, the Founder and CEO of Sun Finance Group.

About bonds

Bond issuance is globally used as an alternative form of debt financing and offers several advantages to the issuer. These include the possibility to diversify funding sources and raise large amounts of financing, flexibility in terms of transaction structure, optimisation of cash flows and promoting the issuer’s recognition in the market. Thus, bond issuance is often a financially more attractive solution than other types of borrowing. Signet Bank offers full range of services for successful issuance of debt securities.

About Signet Bank

The Bank was established in 1992 under the name of Latvian Business Bank. Since 2013, Signet Bank’s strategy has been focused on serving wealthy individuals and their businesses, particularly managing clients’ capital and structuring investment projects. Signet Bank’s majority shareholders are a group of Latvian and international investors that includes SIA Hansalink, SIA and Signet Global Investors Limited.

About Sun Finance Group

Sun Finance Group is a fintech company established in 2017. The Group currently operates in 5 countries across 3 continents and plans to enter new markets in the next year. Since inception, Sun Finance Group has granted loans in excess of EUR 362 million while its gross loan portfolio reached EUR 85 million at the end of July 2019. The Group employs 649 people, from whom 155 are located in Riga.