“Financial markets are extremely competitive. Issuing this issue will help to strengthen our capital base and create conditions for expanding the services provided and lending to union members on more favorable terms. In this way, we will further strengthen our position in the market.
Since the creation of the group, we have ensured sustainable growth, we maintain a well-diversified loan portfolio and a high capital adequacy ratio, we have accumulated the necessary experience and know the safe operation mechanism. We are ready to move forward in the implementation of strategic development goals”, says Mindaugas Raipa, Chairman of the Board of Kreda Group.
The issuing of the issue is based on the positive long-term prospects of the Lithuanian economy. “Kreda” group in 2023-2027 plans to grow by attracting new credit union members and at the same time increasing the share of the credit union market to 35 percent.
According to M. Raipa, by 2022 the reform of the credit union sector must be completed by the end of the year, after which part of the reorganizing credit unions should join the Kreda group. At the same time, the average annual profitability of assets will be increased to 1.50 percent. The range of provided services will also be expanded.
The bonds will be distributed until 2022. on October 17, through distributor Monsoon Capital. The offer is also intended for retail investors, Kreda members. It is planned to issue up to 3,000 units of bonds, the nominal value of one bond is 1,000 euros. After seven years, “Kreda” will redeem the bonds.
“This process is organized in accordance with the requirements regulated by supervisory authorities and good risk management practices of credit institutions. The group complies with all the norms established by the Bank of Lithuania and the European Central Bank, and an independent audit is carried out every year. Kreda Group’s risk indicators exceed the norms set by the supervisory authorities by a large margin. For example, in 2021 December 31 according to the data, coverage with liquid assets reached 908 percent, when the norm is 100 percent, capital adequacy reached 19.08 percent, when the norm is 12.2 percent,” says Mindaugas Raipa.
“Kreda” group in 2022 earned 1.293 million in the first half of the year. EUR net profit, which was 21 percent. higher than in the corresponding period in 2021 (1.067 million euros). The group’s revenue during this period was 28 percent. higher – amounted to 5.402 million euros (4.156 million euros in 2021), assets grew by 12 percent. to 247.072 million euros. 24 percent the loan portfolio of the “Kreda” group also increased – in 2022 June 30 it amounted to 216.407 million. euros.
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