Mosgorlombard MGKL

Performance indicators

2023:28% increase in loans issued to 287,400

The number of loans issued by Mosgorlombard in 2023 amounted to 287,400 units and increased by 28% in annual terms. This follows the company's operating results published in January 2024.

According to the materials of Mosgorlombard, the company's loan portfolio at the end of 2023 grew by 71% compared to 2022 and reached about 1.2 billion rubles. The share of goods stored in the portfolio for more than 90 days decreased over the year from 50 to 16%. The company also increased the number of unique customers by 37% year-on-year to 90,100 people.

source = Mosgorlombard

General Director of Mosgorlombard Alexei Lazutin said that in 2023 the company increased its annual operating indicators due to an increase in existing assets and an aggressive marketing policy, the Mosgorlombard said in an explanation of General Director Alexei Lazutin. He clarified that in 2023 the company strengthened the reduction and turnover of commodity balances, and also opened retail branches in several shopping centers in Moscow for the sale of highly liquid lots "with history." As Lazutin noted, another important result of 2023 was the expansion of the presence on the Internet - for example, the share of customers using the group's online services reached 47%.

This not only makes us resistant to various market shocks, but will also accelerate revenue growth and improve profitability by going beyond the home region and increasing the availability of our services, "added the head of Mosgorlombard.

By the end of 2023, the Mosgorlombard group included the following legal entities: Lombard direction - Avto-Lombard Equivalent LLC, Lombard Platinum LLC; resale of highly liquid goods - LLC "Resale," LLC "Glavmostorg"; secondary market of precious metals - LLC "LOT-GOLD VAT." PJSC MGKL owns a 100% stake in the authorized capital of each company.^[1]

History

2023

Holding an IPO on the Moscow Exchange

On December 28, 2023, PJSC MGKL, the parent company of the Mosgorlombard group, announced an initial public offering (IPO) at the Moscow Exchange. The amount of funds raised reached 303 million rubles - all of them will be used to implement a large-scale investment program.

The price of MGKL shares in the IPO amounted to 2.5 rubles per share. As a result, the company's market capitalization at the time of the start of trading is estimated at 3.17 billion rubles. The share of free-float shares is 14.6%. In accordance with the decision of the Moscow Exchange, the company's securities are included in the "Third Level" section of the list of securities admitted to trading (will be maintained under the ticker symbol MGKL).

MGCL conducted an IPO

Investors participating in the initial placement will receive the right 6 months after the date of completion of the transaction to additionally buy ordinary shares at the IPO price in the amount of up to 20% of the volume of MGKL securities purchased by them as part of the IPO. To this end, an irrevocable offer was announced on the conclusion of transactions for the sale of shares. Securities under this offer will be sold from among outstanding shares owned by the company's major shareholders. At the same time, additional emission is not expected.

As part of the placement, we did not realize the entire planned volume, which gives us the opportunity, if necessary, to use the public capital market in the future, and investors - to take a closer look, it is better to understand the specifics, see our achievements, get acquainted with our development strategy in more detail and decide on the purchase of shares of Mosgorlombard, - says Alexey Lazutin, General Director of MGKL.

The company placed three issues of commercial bonds under a closed subscription and four issues of exchange-traded bonds totaling 1.7 billion rubles, of which the first issue of commercial bonds for 200 million rubles was repaid in February 2023. Thus, by the end of this year, the total debt burden is 1.5 billion rubles.^[2]

Placement of Series 001R-03 Exchange-Traded Bonds

On June 30, 2023, MGKL JSC (Mosgorlombard) placed exchange-traded bonds of a series 001R-03 a nominal volume of 250 million rubles, the coupon rate was determined at 16% per annum. The organizer and underwriter of the placement was Zyfra Broker.

Exchange-traded bonds were placed by private subscription among qualified investors. The term of circulation of bonds is 1,456 days (4 years). The coupon payment is quarterly. The company was assigned a credit rating of ruB + from Expert RA, with a positive outlook.

The funds raised by MGKL JSC are planned to be used to develop the pawnshop network, increase the loan portfolio of pawnshops and finance current activities. This issue, as well as all previous issues of MGKL JSC, showed great interest from investors. We hope for long-term cooperation in organizing the placement of exchange-traded bonds for this issuer, - commented Maxim Chernega, head of the DCM department of corporate finance at Zyfra Broker.

2021: Name change to MGKL JSC

From July 20, 2021

The full name has been changed from JSC Moscow City Pawnshop Plant Pawnshop Mosgorlombard to MGKL Joint Stock Company

2018: The chain's purchase of pawnshops by KVP Group

In March 2018, the KVP Group pawnshop chain signed an agreement with VTB Capital Asset Management JSC to buy the Mosgorlombard pawnshop chain. The amount of the transaction is calculated from an indicator of 1.3 from the working capital of the Moscow City Lombard. The partnership will create one of the largest networks of multifunctional financial centers in the Central Federal District on the basis of the Moscow City Lombard. Within five years, KVP GROUP has been investing more than $100 million in the Lombard business.

KVP GROUP plans to supplement the Mosgorlombard assortment with unsecured loans; loans secured by TCP and real estate; buying precious metals; a thrift store; accepting various payments and selling tickets. Also, after the adoption of the relevant regulatory legal acts, a service for obtaining loans secured by cryptocurrencies will be available in Mosgorlombard.

The main emphasis in the development of the branch network will be placed on the acquisition of existing pawnshop networks, as well as on the development of the franchise direction. In the Central Federal District, the company will retain the already recognizable Mosgorlombard brand, in the regions a common name will be used - KVP (Mutual Assistance Fund). Sources of funding will be personal funds of shareholders, as well as borrowed capital. Immediately upon completion of the transaction, Alexey Lazutin, Chairman of the Council of the National Association of Lombards, will be appointed Director General of the Moscow City Lombard.

At the time of the transaction, the Mosgorlombard network consisted of 20 facilities in Moscow and the Moscow Region. During the existence of the services of Mosgorlombard, more than a million people used. In Mosgorlombard, you can get loans secured by jewelry made of gold and silver, fur products, as well as household appliances and electronics.

2006: Transfer to the ownership of the Bank of Moscow

In 2006, the company was corporatized, then became the property of the Bank of Moscow, and after the Bank of Moscow joined VTB, it became a non-core asset of VTB Group.

1924: Foundation of the organization

Mosgorlombard was founded in 1924. In the Soviet years, he was a monopolist in issuing loans secured by movable property in Moscow.