Mikro Kapital bonds listed today on BVB

Bonds of Mikro Kapital IFN, a non-bank lending institution that provides loans to microenterprises and small businesses in our country, worth two million euros, are listed today on the Multilateral Trading System of the Bucharest Stock Exchange (BVB), under the symbol MKR27E.

The bonds were issued in February last year, following an offer intended exclusively for qualified investors, which was closed early after being supplemented from one million to two million euros. The bonds have an annual interest of 12% payable quarterly, mature in February 2027 and a nominal value of 100 euros per security. The securities are subordinated, non-convertible and guaranteed by Mikro Kapital IFN through a first-ranking movable mortgage on certain, liquid and due receivables held by the issuer, related to credit agreements concluded with its clients which are, in turn, secured by mortgage or real estate, according to the listing memorandum prepared by Goldring.

The funds raised through the bond issue were intended, before the offering in January last year, to finance the lending activity provided by the company, which would allow the development of the business and the consolidation of its position on the microfinance market in correlation with the existing opportunities and the growing demand for Mikro Kapital IFN products.

With its main headquarters in Iaşi, Mikro Kapital has twelve branches in twelve cities in four key regions of Romania. The issuer's financial product portfolio includes business loans for micro and small enterprises, agribusiness loans (for farms and agricultural companies), eCommerce loans (for online businesses), EIF loans (for micro and agricultural companies) and online pre-approved loans. The value of the loans offered varies between 500 and 150,000 euros, depending on the type of collateral provided. The duration of the loans can be up to 36 months for working capital and 60 months for investment loans, according to the listing document.

In the first half of last year, Mikro Kapital IFN had total revenues of 27.2 million lei, 12% more than in June 2023, while net interest income was 17.1 million lei, up 19% for the same reporting period. Net profit amounted to 6.6 million lei, up 59% compared to the first half of the previous year. Total assets were 241.3 million lei, 17% more than at the beginning of the year, while total liabilities were 189.6 million lei, up 18% compared to January 2024.

For last year, the company estimates that it obtained a net profit of 10.5 million lei, the forecast for this year is 11.5 million lei, the result is expected to rise to 13.5 million lei, respectively 13.6 million lei in 2026 and 2027, according to the information presented in the listing memorandum.

Mikro Kapital IFN is part of the multinational group of companies called Mikro Kapital IFN, which invests and lends to financial institutions, specializing in financing small and medium-sized enterprises in Western Europe and Central Asia. The group represents eight companies with operational activities in Italy, the Czech Republic, Romania, the Republic of Moldova, Armenia, Tajikistan, Uzbekistan and eight other companies with holding and management activities in Luxembourg, Switzerland and Hungary, according to the document prepared by Goldring.