On March 15th, 2018 the refinancing of 3-year Finora Capital bonds, worth 4 mio EUR, was successfully completed. New bonds provide somewhat lower returns than previous ones proving increased trust towards the company.
The matured bonds were first-ever bonds for Finora. We issued them in March 2015 when Finora had operated less than a year. During the initial offering many market participants were sceptical about the possibility to raise money at so early stage from thin Estonian capital markets. We are glad that we were able to prove otherwise.
Finora was the first credit provider in Estonia who obtained creditors licence from the FSA based on new creditors law. So far, Finora is the only credit provider who voluntarily publishes its mid-year results. Openness and transparency allowed us to increase the volume of bonds and number of investors throughout the 3 years. It is especially noteworthy that during the refinancing many existing investors decided to refinance their investment into our 2019 bond but also several new investors joined. The issuance of bonds mirrors our broader mission – in addition to being a financing source we wish to expand opportunities at local capital markets.
The other important aspect is that we were able to refinance part of our liabilities into COOP Pank. This provides us serious alternative to bonds first time in our debt financing. It is also noteworthy that bank financing reduces our total cost of capital.
In total, the successful refinancing proved that Finora is professional and trustworthy partner for a bank and for investors. Our financing has become more broad scale and balanced than before. Successful refinancing allows us to focus on excellent client service, both to our more than 1000 existing clients as well as new clients.