Welcome – Debitum Notes

Debitum Investments continues the platform’s development strategy and launches a new financial instrument – Debitum Notes.

“Notes are short-term bonds with a maturity of up to 1 year. New financial instrument will allow us to provide investors with new and wider investment opportunities,”  Ēriks Reņģītis, co-owner of Debitum Investments comments the initiative. 

The first Debitum Notes have been issued to Sandbox Funding – an affiliated loan originator of the platform and will be used to finance Sandbox Funding existing borrowers – Ozolu Meži and others.

What is the difference between ABS and Notes?

Although from the investors’ perspective the subscription and issuance procedure of both financial instruments has much in common, there are several differences between ABS and Notes.

ABS:

• Issued by a special purpose vehicle owned by Debitum Investments.
• Pooling together 5 or more underlying loans acquired from Loan Originator to debtors.
• Loan originator maintains a minimum 100% coverage ratio of underlying assets.
• Buy Back obligation applies to loan originator.
• Payments to investors directly tied to specific underlying assets.
• Mainly intended for non-bank lending companies to finance their clients (debtors).

Notes:

• Issued directly by loan originator or other cooperation partner of Debitum Investments (issuer).
• Payments not directly connected to specific underlying assets but to the issuer as a legal entity generally.
• Secured by a commercial pledge or other guarantee of the issuer or its shareholders (in case of Sandbox Funding, with commercial pledge over its claims against its clients (debtors)).
• Buy Back obligation applies to issuer’s shareholders or other related persons (in case of Sandbox Funding, to its shareholders jointly).
• Allows financing for any company meeting Debitum Investments’ criteria, not only loan originators.
• Can be used for a company’s business expansion purposes, in case of Sandbox Funding, granting new loans to its clients (debtors).

Currently there are 10 Notes available with terms from 6 to 12 months, interest rate from 13.00 to 13.50% p.a., and B+ trust score.

In the INVEST section, you can find Notes by the “Notes” icon and the “Sandbox Funding” logo (see picture)

Visit the INVEST section and explore investment opportunities in Debitum Notes – click here. 

28.03.2024