Iute Group, a digital banking group operating in Southeast Europe, placed an additional EUR 140 million of its existing bonds due 2030 with institutional investors through a private placement. The proceeds will support the continued growth of the Group’sloan portfolio and broader business operations, as well as refinance bonds maturing in 2026.
European institutional investors participated in the transaction, investing in the digital banking group. Following the transaction, the outstanding volume of Iute’s 12% bonds due 2030 amounts to EUR 300 million.
“We wanted to raise capital to continue growing in our markets and to establish a EUR 300 million five-year cornerstone of our capital base. Our high-yield bond listed on the Frankfurt and Nasdaq Tallinn Stock Exchanges matches the yield profile and durationof our loan portfolio, as well as our ambition to build a digital bank and financial superapp in every country where we operate,” said Tarmo Sild, CEO of Iute Group.
“The centre of gravity of our financing has now clearly shifted towards institutional capital in the heart of Europe, although we continue to value the opportunity to offer retail investors an attractive risk-return proposition. The transaction did not directlyor indirectly dilute existing shareholders,” Sild added.
“The bookbuilding was completed within two days, and with EUR 300 million outstanding, our bonds have now reached benchmark size. This represents an important threshold in Iute Group’s international capital markets development. We are now attracting a new categoryof institutional investors. Investors believe in our long-term strategy to build a digital bank for everyday financial services in every market where we operate – and even more importantly, they believe in liquidity and yield,” said Sild.
According to Sild, the message from investors to the Iute team is clear: “You are now large enough. Once you have reached institutional scale, the expectation is simple – work harder, work smarter, because capital never sleeps.”
The proceeds from the tap issue are expected to support the optimisation of Iute Group’s capital structure, including the refinancing of the remaining approximately EUR 48 million of bonds maturing in 2026. At the same time, the transaction supports the continuedgrowth of the Group’s loan portfolio, digital banking operations and other business activities.
The tap issue was carried out under the existing senior secured bonds due 2030 through Iute Group’s wholly owned subsidiary IuteCredit Finance S.à r.l. The bonds carry an annual interest rate of 12%, and the issue price was 99.50%. Settlement is expected onor around 3 June 2026. The additional bonds are expected to be included in the existing listings on the Regulated Market of the Frankfurt Stock Exchange (General Standard) and on the Baltic Regulated Market of Nasdaq Tallinn Stock Exchange.
The 2030 bonds will be repaid according to a gradual amortisation schedule starting in the third quarter of 2029. According to the company, quarterly repayments before maturity help distribute refinancing needs over time and support balanced cash flow management.“Iute’s strong and recurring cash flow creates a solid foundation for servicing and, if needed, refinancing the bonds. Additional flexibility comes from the fact that the average duration of our customer loan portfolio is significantly shorter than the maturityof the bonds. If market conditions remain supportive, we expect to begin refinancing the 2030 bonds no later than the end of 2029,” Sild noted.
In addition to international institutional investors, Iute’s bonds remain popular among retail investors in Estonia and other Baltic countries. “We are grateful for the trust shown by both institutional and retail investors. It is especially important for usthat, alongside international investors, we continue to be supported by investors from Estonia and other Baltic countries who believe in Iute’s long-term development and strategy,” said Sild.
DNB Carnegie acted as Global Coordinator and Joint Bookrunner, while Gottex Brokers and Signet Bank acted as Joint Bookrunners. Bankhaus Scheich Wertpapierspezialist acted as Sales Agent. Aalto Capital acted as Financial Advisor to Iute Group.
Iute Group is a digital banking group focused on everyday financial services in Southeast Europe. Established in 2008 and headquartered in Estonia, Iute serves customers in Albania, Bulgaria, Moldova, North Macedonia, and Ukraine. Through the Myiuteapp and its local operations, Iute provides digital financial services including payments, banking, financing, and insurance intermediation. Iute Group finances its operations through equity, deposits, and secured bonds listed on the Regulated Market of theFrankfurt Stock Exchange and the Nasdaq Baltic Main List.
