News
20 November 2006
Mobile Credit Baltic announces intention to float on AIM
Mobile Credit Baltic AS ("Mobile Credit Baltic" or the "Group"), the leading provider of immediate, short-term credit to borrowers in the growing markets of Finland, Estonia, Latvia and Lithuania, today announces its intention to list its shares to trading on the AIM market of the London Stock Exchange. The Group is expecting to raise in the region of £5 million, with dealings due to commence in December 2006.
Libertas Capital is acting as both nominated adviser and broker to Mobile Credit Baltic.
Founded in 2005 and launched in August 2006, Mobile Credit Baltic, which operates under the brand name Credit24, provides fast, convenient and flexible credit solutions to retail customers throughout Finland and the Baltic region. Customers apply for credit via phone and internet. Designed to provide immediate solutions to consumers' short-term credit needs, Mobile Credit Baltic's sophisticated technology platform enables it very quickly and efficiently to process applications without the need for physical presence or paperwork. In addition, Mobile Credit Baltic offers customers a high degree of service, a repayment system that rewards promptness, and competitive, highly visible terms.
Management
The management team leading Mobile Credit Baltic has substantial experience and expertise in financial services and marketing, including in the consumer sector, both within its target region and elsewhere.
Rami Ryhänen, Chief Executive, was previously Chief Executive Officer of Jippii Mobile Entertainment, one of the most successful consumer marketing firms in the Baltics and Eastern Europe, which was sold to Itouch plc.
Henry Nilert, Chief Financial Officer, was co-founder and Chief Operating Officer of iobox Oy, which was later sold to Telefonica of Spain for €230 million.
About Mobile Credit Baltic
Mobile Credit Baltic was established to address a significant unmet demand in the consumer credit market in Finland and the fast-growing economies of the Baltic States of Estonia, Latvia and Lithuania where, until the launch of Credit24, there was little or no unsecured lending and only very limited lending alternatives compared to more mature markets. Today, the consumer credit market in the region is expected to see rapid growth over the next few years, driven by a number of emerging trends in Finland and the Baltic region: an aspirational, sophisticated and highly educated population, growing demand for consumer goods and services and high and growing use of internet and mobile technology for accessing services.
Operating through its Credit24 brand name, Mobile Credit Baltic has within a limited period built a substantial business that is growing rapidly. The service has been opened in Estonia and Finland where the response in both countries has been better than initially anticipated. The Group is gathering data to assess monthly seasonality and the impact of selective marketing, and to build a comprehensive profile of customers in age, gender, address and repayment. This data, which is facilitated by high local access to broadband internet, will help shape the advertising campaign for a more comprehensive launch in January 2007.
With a combined population of 12.4 million, the region is experiencing rapid growth in domestic credit supported by gross domestic product growth of between 6 and 8 per cent.
Strategy and proceeds
Mobile Credit Baltic's long-term objective is to become a market leader in sub- and near-prime lending in Finland and the Baltic region. The Group intends to build the Credit24 brand with a view to becoming the 'credit provider of choice' in the region, offering multiple credit options to a wide range of customers and meeting the varying needs of different consumer types. Central to this strategy is the development of long-term customer relationships by features such as loyalty schemes to benefit those who repay promptly.
The proceeds of the AIM fundraising will be used to improve the Group's access to capital, support expansion in Estonia and Finland and underpin planned expansion in Latvia and Lithuania, as well as advance the Group's standing through financial regulation and reporting.
Rami Ryhänen, Chief Executive of Mobile Credit Baltic, said: "Mobile Credit Baltic has experienced rapid growth since its launch in August 2006, principally driven by the expanding consumer credit market in the region. Our operating region is one of considerable opportunity, with an underdeveloped market and strong long-term growth prospects. We believe that our business model provides a robust platform from which to exploit this substantial market opportunity."
Further information:
MCB Finance Group:
Libertas Capital:
ajr@libertascapital.com +44 (0)20 7569 9650
www.libertascapital.com
Media enquiries: Capital MS&L:
(0)7733 301 707
(0)7711 608 747
Photographs of Rami Ryhänen, Chief Executive, and Henry Nilert, CFO, are available from Capital MS&L. Contact Peter Curtain on +44 (0)20 7307 5338 / +44 (0)7733 301 707 or email peter.curtain@capitalmsl.com.