CarMoney IFC "KarMani"

CarMoney (LLC IFC "KarMani") is an online auto loan service.

Performance indicators

2023

Revenue growth by 18% to 3.17 billion rubles

In 2023, Smarttekhgroup (STG; legal entity of the microfinance organization CarMoney) earned revenue in the amount of 3.17 billion rubles against 2.68 billion rubles a year earlier (an increase of 18%). Net profit during this time increased 1.4 times - from 389.8 million to 554.2 million rubles. Such data are given in the reporting under IFRS, published in early April 2024.

According to Interfax, citing STG materials, the company's net profit in 2023 increased as a result of an increase in turnover and profitability of the main business. In addition, one-time expenses for fundraising transactions during the round of pre-IPO and DPO shares affected. Excluding these expenses, the profit is 640 million rubles.

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Net interest income of STG in 2023 increased by 26.5% to 2.52 billion rubles from 1.99 billion rubles a year earlier. Return on capital (ROE) in 2023 decreased to 18.7% from 19.7% a year earlier, which the company attributed to a significant one-time increase in capital as a result of the DPO transaction. Adjusted ROE (excluding one-time expenses for pre-IPO and DPO transactions) reached 21.6% in 2023, return on assets (ROA) - 9.4% (7.8% in 2022). The company's OIBDA indicator in 2023 reached 1.9 billion rubles, an increase of 9% compared to 2022.

By the end of 2023, the volume of Smarttekhgroup's assets amounted to 6.5 billion rubles, which is 23% more than the annual figure. The increase was due to an increase in the loan portfolio and the growth of other assets, including cash and intangible assets, the company explained.

The CarMoney owner's own funds in 2023 grew almost 1.8 times compared to 2022, to 3.8 billion rubles. This rise was the result of raising funds during the pre-IPO and DPO, as well as the capitalization of the profit received, the group explained.^[1]

Loan portfolio growth by 10.1%

CarMoney's loan portfolio grew 10.1% in 2023. The company announced this on February 14, 2024.

The volume of issuance increased by 22.2% YoY and reached a maximum value of 3.8 billion rubles in 4 years, of which almost 2 billion rubles. falls on the issuance of 2P2023 (after DPO), which is 29.3% more than in the same period a year earlier.

The number of active loans increased by 79.7% YoY to 40.8 thousand contracts at the end of the year.

The share of unsecured loans amounted to 7.5% of the portfolio, the level of conversion from unsecured loans to auto loans almost doubled over the year - to 8.7% (+ 3.9 pp). The gradual increase in loans with a low check significantly increases the single customer base and cross-sales opportunities.

The number of unique clients totaled 89 thousand people, an increase of 62% year-on-year. Recall that in the declared vectors of strategic development, the target figure is 1 + million customers by 2026.

The share of new customers for the year increased from 60% to 65% of their total number amid the active expansion of the business.

The weighted average rate on auto loans remained at the same level (about 80% per annum). We managed to maintain attractive conditions for borrowers, despite more than a twofold increase in the key rate of the Central Bank of the Russian Federation in 2023.

The average cost of a pledged car amounted to 915 thousand rubles. (+ 6.9% y/y), while the average amount of auto loans increased by 16.1% y/y - up to 321 thousand rubles, which was the result of both an increase in the cost of cars and an improvement in the solvency of borrowers.

A significant share of CarMoney borrowers is made up of entrepreneurs - 40% of the total number of customers (+ 10 pp). Microbusiness remains our target customer segment within our social function.

The level of collateral of the CarMoney portfolio remains high: the cost of cars pledged is more than 2 times higher than the amount of auto loans issued (the LTV coefficient was 2.14x at the end of the year).

The average auto loan payment per month amounted to about 23.3 thousand rubles. (+ 15.9% YoY), which does not exceed 19% of the average monthly income of the CarMoney borrower.

The total number of downloads of the CarMoney mobile application (all versions) increased by 78% over the year, reaching 600 thousand, and the average number of active users (MAU) increased by 63% YoY, per day (DAU) by 58% YoY.

The share of auto loans issued online over the year increased from 85% to 88%.

Шаблон:Quote 'author = said Anna Kalugina, General Director of PJSC "STG."

History

2024: The beginning of the placement of a bond for 300 million rubles

CarMoney will place a new issue of exchange-traded bonds 002P-01 for 300 million rubles. Earlier, on April 4, the Moscow Exchange registered the issue of 3-year exchange-traded bonds of IFC KarMani LLC (CarMoney brand). CarMoney is raising funds to fund the actively growing issuance of new loans. The organizer and underwriter of the transaction will be IFK Solid. The company announced this on April 8, 2024.

The release of the series BO-002R assigned the registration number 4B02-01-00321-R-002P from 04.04.2024, it is included in the third level of the quotation list of the Moscow Exchange. The issue of bonds is planned to be placed by closed subscription among qualified investors.

According to 12M2023, the CarMoney loan portfolio grew to 4.9 billion rubles (+ 10% YoY), the volume of loans increased by 22.2% to 3.7 billion rubles, the collateral coverage ratio of the portfolio remains at a consistently high level - more than 2.1x, more than 88% of loan applications are issued online.

002P-01 Release Options:

• Placement starts on April 9, 2024.
• Volume - 300 million rubles.
• Denomination of one bond - 1,000 rubles.
• Placement price - 100% of face value.
• Coupon rate is the key rate of the Central Bank + 4%.
• Circulation period - 3 years.
• Coupon payment frequency - monthly (30 days).
• Depreciation - provided (10% of the face value on the dates of 9, 12, 15, 18, 21, 24, 27, 30 and 33 coupons, 10% - upon repayment).
• Offer - the possibility of partial/full prepayment is not provided.
• Placement method - closed subscription among qualified investors.

No preliminary collection of applications for participation in the placement of this issue is planned, those wishing to participate in the initial placement will be able to submit applications on the day of the start of trading in Z0 mode.

The issuer has a credit rating from Expert RA of ruBB level, the rating was assigned on October 26, 2023 with a positive outlook.

The funds received from bond issues (debt) will be used to finance new issues.

This is the sixth issue of the issuer's bonds, it is carried out within the framework of the indefinite program of exchange-traded bonds with a maximum volume of 15 billion rubles. The program was registered by the Moscow Exchange on April 3, 2024 with the assignment of the 4-00321-R-002P-02E identification number. Over the previous 6 years, the company placed five bond issues with a total volume of 1.5 billion rubles, three of which for a total amount of 850 million rubles were successfully repaid. Two papers are in circulation for April 2024 - KarMani 01 (ISIN: RU000A103R98) and KarMani 02 (ISIN: RU000A1058U6) with maturity, respectively, in September 2024 and September 2025.

Шаблон:Quote 'author = said Artem Saratikyan, director of corporate finance management at CarMoney.

Шаблон:Quote 'author = noted Alexey Vasiliev, head of the Corporate Finance Department of IFK Solid.

2023

Opening a credit line for 350 million rubles. at TKB Bank

The CarMoney service raised 350 million rubles to finance current activities. The credit line was opened at TKB Bank PJSC for a period of 36 months until August 2026 in order to implement the declared strategy of growing and increasing the volume of loans.

We welcome the opening of a credit line at TKB Bank and are pleased with the high assessment of the credit quality of the CarMoney business. Our cooperation with banks has been actively developing over the past two years and allows the company to qualitatively diversify its investment portfolio. Such diversification reduces the average cost of debt financing and makes our business even more sustainable. In particular, despite a noticeable increase in the key rate in August 2023, CarMoney retained the weighted average debt rate at a level comfortable for the company, - commented Artem Saratikyan, director of corporate finance at the CarMoney fintech service. - As of September 2023, we have access to all funding sources: equity, investment loans, bond issues and bank credit lines. And if the main task of equity capital is to maintain compliance with the regulatory capital adequacy standard to remove restrictions on the growth of the loan portfolio, then debt funding is the main source of working capital for us.

The Bank positively assesses the prospects for the development of the microfinance market and already acts as a financial partner for leading microfinance organizations, offering optimal banking solutions, - said Tatyana Satina, head of the corporate business unit - TKB banking group.

CarMoney plans to develop cooperation with the TKB banking group and other banks.

CarMoney's external financing portfolio as of June 30, 2023 amounted to 2.8 billion rubles.

The total (2017-2023) coupon income paid on all bond issues at the end of the 1P2023 amounted to 700 million rubles.

In total, since 2016, investors have been paid more than 2.6 billion rubles of income.

Moscow Exchange admitted to trading shares of fintech company CarMoney

The Moscow Exchange admitted to trading shares of SmartTechGroup (STG), which is the parent company of the fintech service CarMoney. Securities will be included in the "Third Level" section. This was announced on June 21, 2023 by the press service of the Moscow Exchange.

Shares on the Moscow Exchange will be traded under the ticker symbol CARM. The total amount of placed securities of SmartTechGroup will amount to 600 million rubles. Trading and settlements for shares will be carried out in rubles. The start of trading is scheduled for July 3, 2023. The organizer of the placement is IFK Solid. Shareholders of the company intend to assume obligations limiting the alienation of shares until 180 days after the start of exchange trading.

CarMoney shares will be traded on the Moscow Exchange

By June 2023, CarMoney is a 100% subsidiary of Smarttekhgroup Joint Stock Company, which was created in October 2022. The company is engaged in issuing microloans secured by vehicles. The company transferred the parent structure to Russia from Cyprus to reduce sanctions risks.

We want to use a direct listing procedure that is well established in the placement of technology companies. Today, trading companies have a significant discount against the market until February 2022, which creates additional opportunities for investors. Therefore, we enter the market with a small supply, the funds from which will allow us to successfully implement our strategic plans in the coming year, "said Anton Zinoviev, founder of the CarMoney fintech service and STG shareholder.

According to him, in the future the company will consider the possibility of additional raising of equity capital, depending on the situation on the market. A Vedomosti source from a Russian broker said that, taking into account the expected receipt of funds in capital, CarMoney is estimated at 7.9 billion rubles.^[2]

Placement of five bond issues worth 1.5 billion rubles

In just 6 years, CarMoney has placed five issues bonds totaling 1.5 billion. rubles The debut issue, repaid in November 2022, was placed on Moscow Stock Exchange in 2017 at the stage of formation of the segment of high-yield bonds Russia in and aroused high interest of creditors.

2022

Transfer of the head structure from Cyprus to Russia

In mid-January 2023, it became known about the decision of the CarMoney service decided to transfer the parent structure from Cyprus to Russia. At the end of December 2022, the owner of Microfinance Company Karmani LLC, instead of the Cypriot Karmani Sai LTD, was SmartTechGroup, registered in Russia, according to the data of the Unified State Register of Legal Entities (USRUL).

CarMoney obeyed the legislation of Cyprus, while doing business in Russia. However, Cyprus is part of the European Union, which imposed economic sanctions on Russia after the outbreak of the conflict in Ukraine.

In the first quarter of 2023, it is planned to transfer from CarMoney CY shares of STG JSC to all its shareholders. The transition to Russian jurisdiction corresponds to our development strategy, which is focused on the Russian market. In addition, this will reduce sanctions risks, "the company said.

According to Grigory Skripilev, a lawyer at Intercession, the head of dispute resolution and judicial representation, when the company is registered in one state and works in another, this puts it "in a bipolar situation." A company can be prosecuted in the EU for circumventing or violating sanctions legislation, and in Russia, a business can be prosecuted in the Russian Federation for interacting with a company from an unfriendly state.

CarMoney auto loan service is based on Anton Zinoviev and Konstantin Evdakov. The Company provides loans to individuals and legal entities. With the help of CarMoney, the user can borrow up to 80% of the cost of a car secured by a vehicle passport (PTS), indicated on the project website.^[3]

Attraction of 300 million rubles

Fintech service CarMoney on November 17, 2022 announced that it had raised 300 million rubles to finance current activities. The credit line was opened at Expobank JSC for a period of 24 months, until November 2024, in order to implement a strategy aimed at increasing capitalization and increasing market share.

The decision to provide a credit line is an indicator of a high assessment of CarMoney's reliability, which is especially important in the current conditions of uncertainty in the financial markets, "commented Artem Saratikyan, director of corporate finance at CarMoney. - Long-term access to funds of a credit institution allows diversifying sources of business funding and positively affects the cost of attraction, which will help us to ensure dynamic growth in the auto loan market in the peak season of the fourth quarter and improve the credit quality of the company in the eyes of partners and investors.

CarMoney plans to further develop cooperation with Expobank JSC, and in general more actively use such an instrument as bank financing to replenish working capital.

The fintech service also finances the current activities through retail investment loans. Also in circulation at MICEX are four CarMoney bond issues worth more than 1 billion rubles. CarMoney's investment portfolio reached 3 billion rubles, the company's equity - 2 billion rubles.

2021

On March 23, 2021, Stolichny Zalovy Dom LLC, the former legal entity of the CarMoney fintech service, was liquidated.

2019

As of September 2019, the microfinance company Stolichny Zalovy Dom, known under the CarMoney brand, provided retail financial services to individuals and entrepreneurs, providing them with loans from 50 thousand to 1 million rubles secured by PTS.

2017: Debut bond issue

The debut issue, repaid in November 2022, was floated on the Moscow Exchange in 2017 at the stage of forming a segment of high-yield bonds in Russia and aroused high interest of creditors.

Notes