Multitude Capital Oyj successfully places EUR 70 million in perpetual bonds qualifying as IFRS equity

Core Insights - Multitude Capital Oyj successfully placed EUR 70 million in subordinated perpetual capital notes, qualifying as IFRS equity, under a framework of EUR 120 million [1] - The issuance attracted strong demand from both existing and new institutional investors across Continental Europe, the Nordics, and the UK [1] Financial Details - The Capital Notes carry a floating rate coupon of 3 month EURIBOR plus 8.90% and were priced at 96.00% of the nominal amount [2] - The net proceeds will be used to finance the tender offer for Multitude's outstanding EUR 45 million perpetual capital notes and for general corporate purposes [2] Exchange Offer - Holders of the Existing Notes were offered to exchange their notes for Capital Notes, with approximately EUR 19.2 million participating in the Exchange Offer [3] - An additional opportunity for holders of the Existing Notes to tender their notes at a price of 102.00% was also announced [3] Management Commentary - The CFO of Multitude stated that the transaction reflects a disciplined capital markets strategy and aims to optimize the capital structure while supporting growth [4] Credit Ratings - Fitch Ratings affirmed Multitude AG's Long-Term Issuer Default Rating at 'B+' with a Stable outlook and upgraded the consolidated Group's standalone credit profile to 'BB-' from 'B+' [4] - The Capital Notes were assigned an expected long-term rating of 'B-'/'RR6', in line with Multitude AG's Existing Notes [5] Company Overview - Multitude AG is a listed European FinTech company providing digital lending and online banking services to consumers and SMEs, employing over 700 people in 25 countries [8] - The company achieved a combined turnover of EUR 274 million in 2024 and operates through three independent business units: Consumer Banking, SME Banking, and Wholesale Banking [8]