Iute after continued interest from investors with renewed exchange offer for EUR bond 2019/2023 – Tap of EUR Bond 2021/2026 by up to EUR 10 million

Iute after continued interest from investors with renewed exchange offer for EUR bond 2019/2023

Tap of EUR Bond 2021/2026 by up to EUR 10 million

• Exchange offer period for holders of the EUR 2019/2023 bonds from 30 May to 3 July 2023, 13:00 CEST.
• Exchange offer-related tap of EUR 2021/2026 bonds at exchange price of 96.5% with an interest rate of 11.0% per annum payable semi-annually; difference to exchange price of each new bond and its nominal value (EUR 35.00 per bond exchanged) and accrued interest for period from 7 February to 12 July 2023 will be paid in cash.
• Yield to maturity for exchange offer-related bonds of 12.3%.
• Exchange ratio 1:10, as a result of different denominations of the bonds, i.e., EUR 2019/2023 bond denominated at EUR 1,000.00 each, EUR 2021/2026 at EUR 100.00 each.

Tallinn, Estonia, 30 May 2023. Iute Group, a leading European personal finance group, through its fully owned subsidiary IuteCredit Finance S.á r.l today launched a renewed offer to exchange the 2019/2023 EUR bond for the 2021/2026 EUR bond. The objective is to refinance the EUR 2019/2023 bond and to tap the EUR 2021/2026 bond by up to EUR 50 million. Following the already secured refinancing of the EUR bond 2019/2023 and the continued interest of investors, the intention is to provide a further opportunity for exchange. The objective is to tap the EUR bond 2021/2026 by up to EUR 10 million to then up to EUR 125 million.

The EUR 2021/2026 bonds, with an interest rate of 11.0% per annum payable semi-annually, are being offered to the bondholders of the EUR Bonds 2019/2023 in the form of an exchange offer at an issue price of 96.5%. The difference to the exchange price of each new bond and its nominal value (EUR 35.00 per bond exchanged) and the accrued interest for the period from 7 February to 12 July 2023 will be paid in cash. The yield to maturity for the exchange offer-related bonds amounts to 12.3%.

As a result of the different denominations of the bonds, the exchange ratio equals 1:10, i.e., one EUR 2019/2023 bond entitles the holder to subscribe to ten new EUR 2021/2026 bonds. While the EUR 2019/2023 bond is denominated in EUR 1,000.00 each, the denomination of the EUR 2021/2026 bond is EUR 100.00 each. The exchange offer commenced today, 30 May and will end on 3 July 2023, 13:00 CEST.

All bondholders will receive information on the exchange offer through their depository bank. For questions regarding the exchange offer, investors may contact Manfred Steinbeisser directly at: manfred.steinbeisser@aaltocapital.com.

The new EUR 2021/2026 bonds are to be admitted to trading on or about 12 July 2023 on Frankfurt Stock Exchange’s regulated market (General Standard), and the Baltic regulated market of the Nasdaq Tallinn Stock Exchange.

The securities prospectus approved by the Commission de Surveillance du Secteur Financier (CSSF) in Luxembourg is now available on the Company's website at: https://iutecredit.com/investor/#bonds.

Aalto Capital (Germany) acts as Financial Advisor to the Group.

All information on the offering process as well as the documents required for the subscription of the bonds are available on the Company's website under the link https://iutecredit.com/investor/#bonds.

Contact:

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

About IuteCredit Group:

Iute Group 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, Bosnia and Herzegovina, 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.iutecredit.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, 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. The bonds have not been and will not be registered under the Securities Act or under the applicable securities laws of any state of the United States and may not be offered or sold, directly or indirectly, within the United States or to, or for the account or benefit of, U.S. persons 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 Directive 2003/71/EC, as amended (the “Prospectus Directive”) 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.