NEO Finance, AB (the “Company”) and a partner are establishing an investment portfolio of EUR 2,4 million in consumer loans, and a special purpose vehicle (SPV) has been set up with NEO Finance, AB as its sole shareholder to manage this portfolio. This strategic decision will allow for faster funding of customer loans and more efficient deployment of funds to retail investors on the platform. The Company’s share of the investment in the agreement amounts to EUR 360 thousand. The cooperation period with the partner is foreseen for 3 years, during which the SPV will acquire the investment portfolio formed by the Company.
In order to ensure the fulfilment of its obligations to the Partner, the SPV has undertaken to pledge the entire investment portfolio and the shares owned by the SPV. The parties agreed that in the event that the Partner’s receivables under the Contract are insufficient to cover the shortfall following the realisation of the investment portfolio, the Company undertakes to cover the shortfall with its own funds.
The active loan portfolio of the peer-to-peer lending platform Paskolų klubas currently operated by the Company exceeds EUR 80 million.
Evaldas Remeikis
Head of Administration