NEO Finance, AB, together with its partner, will form an investment portfolio of EUR 2.5 mln. EUR in consumer loans.

NEO Finance, AB (the Company) has reached a significant agreement with a partner and announced an investment of EUR 2.5 million in a portfolio of consumer loans to be managed by a special purpose vehicle (SPV) established for this purpose. This strategic decision will allow for faster funding of customer loans and more efficient deployment of funds to retail investors on the platform.

The planned cooperation period with the partner is 3 years. Over the next two years, the SPV will acquire the Company’s investment portfolio, which has been formed in accordance with the Company’s conflict of interest avoidance rules.

The repayment of the amount of EUR 2 million lent by the Partner to the SPV is secured by a surety provided by the Company, under which the Company has undertaken to be liable to the creditor with its own assets and funds up to the amount of the amount lent if the SPV fails to fulfil its obligations under the credit agreement in a proper and timely manner. The parties have also entered into a subordination agreement whereby all amounts payable by the SPV, future loans and related obligations are subordinated to the Company, under the Credit Agreement, for the benefit of the Partner, to ensure the proper performance of the Credit Agreement. “Our goal is not only to provide a competitive return to investors, but also to create an efficient, faster loan financing process that will benefit both the borrowers and the investors in the platform,” says Evaldas Remeikis, Head of Administration of the Company.

Currently, the Company’s active loan portfolio under management amounts to just over EUR 78 million.

Evaldas Remeikis

Head of Administration

Email: evaldas.remeikis@neofinance.com