Mintos has launched a €20m (£17.2m) fractional bonds supply from Latvian manufacturing agency iCotton that its buyers can take part in with as little as €50.
The European lending market unveiled its fractional bond product in October this yr, enabling buyers so as to add company bonds to their portfolios.
“Personal placement is a novel alternative for buyers on Mintos, as non-public placement funding is historically solely open to particular person buyers with a whole lot of 1000’s of euros to speculate,” Mintos stated. “iCotton bonds are unique to Mintos within the type of fractional bonds, beginning at simply €50. That is our first fractional bonds supply linked to a significant manufacturing firm. This supply additional permits buyers to diversify their portfolio, as iCotton is a very new trade to buyers on Mintos.”
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iCotton Group manufactures hygiene and beauty merchandise, with a very robust presence in Poland and the Baltic States. Within the first 9 months of 2023, iCotton Group reported revenues of greater than €50m and core earnings of virtually €8m.
It’ll problem €20m in non-public senior secured bonds, with a maturity of three-and-a-half years.
They’ll have a bullet reimbursement construction, the place the principal that’s borrowed is paid again at maturity.
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The bonds have an annual rate of interest of six per cent + 3m Euribor, which Mintos stated brings the return to 9.975 per cent for the primary calculation interval. Curiosity is paid quarterly.
The funding supply for iCotton fractional bonds on Mintos ends on 15 December.