The parent company of SMS Laen borrowed 31 Million Kroons (Äripäev, in Estonian)

In July SMS Laen, the parent company of Creditstar Group Plc, issued bonds worth 2 million euros, with the redemption date 8 December 2011.

The value date of bonds was 8 July with a yield of  20% per year. The issue of the bonds was subscribed by investors from three states, half of which constituted Estonian private investors. The bond issue was advised by Redgate Capital.

The current bond issue correlates with the group`s strategy which is to expand, in addition to Estonia and Finland, to three other European countries during the years 2010-2011. The group intends to use the money gained from the issue of bonds to expand its lending activities in Estonia and Finland.

Creditstar Group Ltd is a parent company founded in 2010, it includes SMS Laen Ltd in Estonia and Creditstar Finland Plc in Finland. The group has 21 employees servicing more than 75 000 customers. In 2009 SMS Laen made a net profit of 17.1 million kroons, with the owner´s equity 74.0 and a balance sheet total of 148.2 million kroons. The company´s estimated market share on the Estonian small-loan market is about 50%.

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