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Bonds with private offer: Albanians invest again in iute. Increases the company’s reliability in operations and services.

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Iute, the Estonian fintech company, has once again issued bonds through a private offering, reaching an issuance value of 2.7 million euros. The amount raised through this bond issuance reflects the trust that this company enjoys in the eyes of Albanian investors. Moreover, it speaks to a positive trend for the Albanian economy itself and the diversification of investment tools.

To learn more about this news, we conducted an interview with two key figures behind this operation at Iute. They are the Heads of the Finance and Risk departments, Mr. Ervin Peçuni and Ms. Alma Hasanaj.


Question: Ervin, for our readers who may not be familiar, could you first explain what a bond is?

Ervin Peçuni:

A bond is a debt security where a company borrows from investors, either through a public or private offering, and promises to pay periodic interest and, at the maturity date, return the principal amount invested. From an investor’s perspective, it is an investment instrument that provides returns with a specified interest.

Question: Ervin, why did iute decide to undertake this operation at this moment?

Ervin Peçuni:

This operation is the result of long and rigorous planning and coordination with regulatory bodies such as the AMF and BSH. Iute, in order to secure the necessary funds for offering loans and microfinance services, facilitating its operations and daily customer services, supports alternatives such as borrowing from second-tier banks or international financial markets. This marks the second time iute has issued private offering bonds in the Albanian market.

This fund securing practice is intended to be one of our significant resources, similar to how the iute group issues listed bonds on the Frankfurt Stock Exchange, where it already has consolidated experience in this direction and periodically secures funds and investors based on its needs.

Question: For ordinary people, what does this operation mean?

Ervin Peçuni:

Beyond being a debt instrument for the company, for ordinary people, the bond also presents a new investment alternative. It is an opportunity for individuals with available funds to contribute to our growth and success while benefiting from returns on this investment.

Question: Ervin, people often confuse bonds with treasury bonds. Could you explain the difference between them?

Ervin Peçuni:

A bond can be issued by a company, as in the case of iute, or by the government in the case of government securities. Treasury bonds, unlike bonds, are issued by the state and have a maturity of less than a year. In all cases, the common goal is to secure funds from potential investors, but the entities issuing them (private/public) and the purposes differ. In general, company bond issuances, whether private or public, are more attractive and foresee a shorter maturity and repayment period.


An important dimension of this financial operation is the risk element for investors. On this topic, we discussed with Ms. Alma Hasanaj, the Risk Manager at iute.

Question: Alma, what does this operation mean in the context of the overall risk management of the company?

Alma Hasanaj:

This private bond issuance operation is evidence of the trust Albanian investors have in iute. The 2.7 million euros secured by investors reinforce the confidence in our financial stability, business operations, as well as trust in our strategic plans and future. This trust in my judgment, as part of the management team, is well-deserved based on the way iute is organized in terms of corporate governance. It is the responsibility of the management team to determine and execute the corporate strategy, risk management, auditing, and other supervisory functions systematically.

Question: Alma, can you tell us about the process of offering a bond through a private offering? How is this type of bond created and approved?

Alma Hasanaj:

Certainly. The process is rigorous and can take time depending on the requirements set by regulators, even though theoretically, it is a fast process. The key document presenting the company is the Offering Memorandum, which reflects all necessary information for investors and must be complete and truthful. This prospectus, along with accompanying documentation, is submitted to the Financial Supervisory Authority, which, after verifying compliance with regulatory requirements and consulting with our supervisory authority, makes the final decision to register the offering memorandum.

Question: Transparency is crucial in financial relationships. How transparent are you regarding the risks associated with this offering?

Alma Hasanaj:

Transparency accompanies this operation from start to finish. From the initial moment when we draft the offering memorandum, we concisely list all risk factors for the bond (debt instrument) and for the issuer (company/iute). This information requires careful attention from investors before deciding to invest.

Any other information presented in the offering memorandum provides a complete and truthful representation of the company’s assets and liabilities, profits and losses, financial condition, and operations. No facts or data that could affect the completeness and truthfulness of this offering memorandum, as well as investors’ decision to invest, are omitted.

The historical business results and the company’s development strategy for the future, as well as the favorable interest rate for a 3-year investment period, made this proposal attractive to our investors.

Question: Finally, Alma, is there any plan to make this offering public in the future?

Alma Hasanaj:

While this bond was privately offered, we have plans for a future operation where the bond will be an open investment instrument for the general public, expanding opportunities for more investors to join in the further growth and development of Iute.

This challenge and our desire align with the experience of the iute Group, which, as mentioned earlier, has successfully issued corporate bonds through a public offering listed on the Frankfurt Stock Exchange. We believe that this objective of ours will be anticipated with positivity, serving the development of the capital market in the country.

As Iute registers a “personal” success in this direction, the collection of this amount also indicates an increasingly growing trust in microfinance, where Iute has managed to maintain technological advantage and stay updated with the needs of clients, as well as the requirements of investors.

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