Online Microfinance Company to Issue Dollar Bonds at the AIX

Member of IDF Eurasia, the OnlineKazFinance microfinance company is planning to issue two-year dollar bonds in the amount of $7 million. This offering is scheduled on September 29 at the Astana International Exchange with help of Freedom Finance as an underwriter. The coupon rate of one bond with a nominal worth of $100 is 9% per annum with quarterly payments. 

OnlineKazFinance was established in August 2016 and since then it has provided people and small businesses with microloans. The company is the first and only loan provider that works solely via an online platform with Solva and MoneyMan brands. 

The core business of Solva is based on unsecured loans to individuals and small businesses for three years and not more than two million tenge ($4750). The share of loans to businesses is about 15% of the company’s loan portfolio. Another brand MoneyMan is specializing in providing prompt unsecured online loans to highly educated and tech-savvy individuals. If their income is about 150,000 ($356) they may apply for the loan in 130,000 tenge ($308) to cover urgent daily costs. 

In 2019 OnlineKazFinance revenue has risen three times if compared year to year to 5.7 billion tenge ($13.5 million). In the first quarter of this year, it earned about three billion tenge ($7.1 million) or four times more than the same period last year. The net profit for 2019 was about 1.4 billion tenge ($3.3 million) against 142 million tenge ($337,484) of losses in 2018. The net profit for the first six months of 2020 is 1.179 billion tenge ($2.8 million). As of July 1, the company’s loan portfolio increased five times up to 29 billion tenge ($68.9 million) or five times if compared to 2018 while the loan delinquency rate above 90 days is still 9-11% like it was in 2018. 

OnlineKazFinance is a part of the big international holding ID Finance Group that attracted three times the funding through bonds offered on the Moscow exchange. Moreover, in August OnlineKazFinance also offered at KASE two-year bonds in the amount of 1.9 billion tenge ($4.5 million) with a coupon rate of 19% per annum. As a result, the total amount of bonds issued was about four billion tenge ($9.5 million). According to Ivan Savelyev, IDF Eurasia director for investments, the company can make additional offerings this fall.  

ID Finance Group is represented in Russia and Kazakhstan (as IDF Eurasia), as well as in Spain and Mexico (ID Finance). In general, the group works with 12 million clients around the globe. The total revenue of the holding in 2019 amounted to $225 million, the loan portfolio – $135 million. The key shareholders of the ID Finance Group are Boris Batin and Alexander Dunaev. 

The OnlineKazFinance bonds are available for everyone through Freedom Finance and other brokerage firms.