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Investor Relations

2022 July 22

PlusPlus Capital AS issues EUR 70 million corporate bond

First-time bond exchange listing as next growth step

Tallinn, Estonia, 22 July 2022. PlusPlus Capital (“PPC”), a leading Pan-Baltic and Finnish technology-driven receivable management group, issues a four-year corporate bond (ISIN: XS2502401552) offering the conversion option in the refinancing of existing bonds and for growth financing. Today, PlusPlus Capital Financial S.à r.l. (Luxembourg) issued EUR 70 million of senior secured bonds at 96% with an interest rate of 11% and term until 2026. Settlement is to be expected on 29 July 2022.

The new bonds are expected to be included in the Open Market of the Frankfurt Stock Exchange on 29 July 2022.

GOTTEX Brokers SA (Switzerland), STX Fixed Income B.V. (The Netherlands), AS Redgate Capital (Estonia), Bankhaus Scheich Wertpapierspezialist AG and Adamant Capital Partners AD collectively accompanied the offering as managers. Aalto Capital (Germany) acted as financial advisor and global coordinator to the Group.

“The issue of our first exchange-listed bond is a major step in the further development of PlusPlus Capital. PlusPlus Capital pursues a win-win approach in its business activities, which is also reflected in the issue of our first listed bond. By doing so, we can offer better conditions to our existing investors, while at the same time providing new investors with an interesting investment opportunity. In addition, we see a great opportunity for our business activities, particularly in difficult economic times that are favorable for our business,” said Kaarel Raik, CEO of PlusPlus Capital.

Contact:

PlusPlus Capital

Peeter Piho, Member of the Board of Managers

Email: peeter.piho@plusplus.ee

Phone: +372 622 4020

Aalto Capital (Investor Relations)

Sven Pauly, Consultant

Email: sven.pauly@aaltocapital.com

Phone: +49 89 898 67 77 0

About PlusPlus Capital

PlusPlus is a pan-Baltic and Finnish technology-driven receivables management company with offices in Tallinn, Riga, Vilnius, and Helsinki. The Company acquires overdue loans and other non-performing exposures from financial institutions and non-financial sector merchants. With its core competence in handling claims against private individuals, PlusPlus prefers diversified portfolios balanced by geography, portfolio type, and other metrics.

Since its inception in 2010, PlusPlus has bought over 100 thousand claims with nominal value of approximately EUR 274 million, following best practice industry standards. The Company offers its clients affordable recovery solutions and aims to avoid litigious scenarios. In doing so, PlusPlus pursues win-win solutions that allow sellers to focus on their core business, provide affordable solutions for borrowers, and ensure adequate returns for investors.

PlusPlus is a transparent and socially responsible company set to assist people in resolving problems connected with their insufficient solvency. The ambition of PlusPlus is to increase its market share and further strengthen its position as a leading player in its regional market.

pluspluscapital.eu

2022 June 14

PlusPlus Capital to conduct European investor meetings – potential bond offering (subject to market conditions)

Tallinn, Estonia, 14 June 2022. PlusPlus Capital (“PPC”), a leading Pan-Baltic and Finnish technology-driven receivable management group, mandated GOTTEX Brokers SA (Switzerland), STX Fixed Income B.V. (The Netherlands) and Redgate Capital (Estonia) to arrange a series of European fixed income investor meetings.

 

A 4 Y Reg S only EURO denominated Senior Secured Corporate Bond offering of up to approximately EUR 75 – 100 million may follow, subject to market conditions.

 

 

2020 March

OPERATIONAL UPDATE REGARDING COVID-19

In the extraordinary situation caused by the outbreak of the coronavirus and actions taken by governments to limit its’ spending PlusPlus Capital acts responsibly and in compliance with rules and recommendations from authorities in all countries. Protecting employees and continuing operations will remain our priorities.

PlusPlus has been built to operate successfully in all phases of economic cycles including recession and is now working according to the plan prepared for operating in turbulent environment.

 

WE ARE DIGITAL

Developing of technology and IT-driven digital operating model secures full business continuity regardless the degree of strictness of the restrictive measures governments impose to people and companies. This enables performing essentially all business functions from distance and guarantees that PlusPlus will stay fully operational across the extraordinary situation in Estonia, Latvia, Lithuania and Finland, the four home markets.

 

SHORT TERM EFFECT ON PLUSPLUS

As the COVID-19 virus continues to spread, PlusPlus is working on the assumption that the macroeconomic situation will worsen in the coming months.

Over the 10 years of operations PlusPlus has always operated on the assumption that offering affordable payment solutions will not only ensure better client relations, but also generate higher returns for the company. PlusPlus stays committed to its’ strategy and will offer flexible restructuring options for clients who need relief. As a result, the temporary contraction in collection will be more than offset by longer schedules and better returns over the rest of the life of existing agreements.

As unemployment grows, amount of client payments declines. According to the model we use, incoming cash flow will temporarily decrease by 20-30 per cent.

PlusPlus has fully taken account of this scenario and is well prepared to continue performing well in changed circumstances Incoming cash flows is sufficient to cover everyday running costs like salaries, rent, etc., even if collections will be temporarily negatively affected.

 

LONG TERM OUTLOOK

On a longer run economic downturns may generate attractive purchasing opportunities. Supply of non-performing loans will grow as default rates in banks soar and portfolio prices will drop accordingly.

PlusPlus was established in 2010 shortly after the end of the global financial crisis and as our track record confirms, the portfolios purchased in post-crisis environment have generated superior returns due to lower purchase prices and gradually improving solvency of clients in recovery phase.

However, for the time being there will be a lot of uncertainty in the market and PlusPlus will not engage into new investments before visibility improves. We expect that the change in the market may take as long as 6-12 months.

We will honor valid forward flow contracts and carefully monitor market dynamics to promptly react on new developments. The management of PlusPlus is convinced that the company is fully equipped to continue operating smoothly and delivering solid performance for the investors.

 

Should you have any concerns or questions, please contact us.

Stay safe and healthy!