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Established in 2009
Markets: Estonia, Lithuania, Poland
Offices: 7
Services: Non-banking mortgage loan provider
Executive Summary
Purpose of this document
- Omega Laen AS (“the Company”), one of the biggest Baltic Country providers of real estate-backed consumer loans, is seeking to raise additional funding in the form of an overdraft credit facility to refinance current high-interest liabilities, as well as to increase its Loan Portfolio in Estonia, Lithuania and Poland.
- The goal of this document is to initiate discussions with potential finance providers and present key investment considerations.
Transaction
- The Company is open to consider different sultions from potential providers: (1) the size of debt capital; (2) geographic exposure the potential finance provider is willing to assume; (3) the maturity of funding provided.
- The decision will be made based on the following considerations: (1) longer maturity is preferred; (2) revolving structure of the debt instrument is preferred; (3) interest rate that matches the funding costs of the Company's peers; (4) size of the debt capital provided (the Company is seeking to attract a financial partner with a significant financial commitment).
Company facts
- The Company was established in 2009 and quickly expanded within the Estonian, Lithuanian and Poland markets.
- The competitive advantage of the Company is the ability to offer flexible loan solutions and quick decision making process without compromising on the quality of the loan portfolio.
- The Company has a strong financial standing characterized by rapid revenue growth and profitable operations.
- The Company has been successfully servicing its debt. None of due payments were missed.
- By December 31, 2024, the Company had around 700 outstanding loans and 600 active clients.
- The Company adheres to very conservative lending practices: (1) a significant discount is applied when valuing collaterals provided by clients and only the most liquid real estate is accepted; (2) the Company rejects more than 80% of applicants.
- Shareholders take active part in the day-to-day management of the Company: their approval is required for all in excess of EUR 30.000.
Omega Laen AS
Key facts
Start of Operations: Established in 2009
Markets: Estonia, Lithuania, Poland
Permanent Employees: 24 permanent employees
Number of offices: 7 offices
Services: Non-banking mortgage loan provider
Source of capital
for additional information
Consolidated financial data
for additional information
Combined experience of shareholders & top management in lending exceeds 45 years
Private person, Resident
of Estonia
17,5%
Private person, Resident
of Estonia
65%
Private person, Resident
of Estonia
17,5%
Legal person, Estonian jurisdiction 100%
Omega Laen AS
Market
- The Company operates in a niche market segment, offering only real-estate secured loans in three market (Estonia, Lithuania and Poland)
-
The Company fills the gap between small consumer loan providers and banks in terms of loan size, maturity and pricing
- Avoids uneven and costly competition with banks
- Narrowly defined product focus allows lean organisation and mitigates risks
- Avoids uneven and costly competition with banks
- Narrowly defined product focus allows lean organisation and mitigates risks
Competitive advantage
-
The primary competitive advantage of the Company is the quick loan approval process and the ability to adapt to client needs, while adhering to principles of conservatism and risk aversion when evaluating clients
- The dicision to issue a credit takes only 1 day
- The whole process from a loan application to cash transfer takes only 3 days
- Ability to serve non-standart cases which do not fit the strict criteria of the banks (micro-entrepreneurs, customers with non-Estonian income. etc.)
- Less documents are required from loan applicants
- Productive relationships with real estate agents enables the Company to streamline its marketing campaign
- The Company is broadly represented across Estonia, Lituania and Poland and is the one of the leaders is non-banking mortgage lending in Baltic Countries
Quality of credit portfolio
-
The Company maintains a quality credit portfolio
- All loan applicants undergo thorough qualitative check before being approved
- The Company meets face-to-face with each potential customer
- The value of typical real-estate is determined in-house, while non-standart properties are valued by an independent appraiser
- Since 2009, in only 5 cases has the Company incurred losses on bad loans after the collateral has been repossessed and sold (the loss did not exceed EUR 30 K)
Operational Excellence
- Excellent growth record and financial stability
- Cost-efficient operating model and lean organisation
Credit Portfolio of Omega Laen Ltd. in Estonia
Credit portfolio:
EUR 14.1 M
Credit portfolio:
Average loan issued:
EUR 77 thousands
Average outstanding balance: EUR 57 thousands
Interest rates:
Weighted average interest rate: 11.8%
Average loan maturity: 9
years
Clients:
Private clients: 23% (99.9% over 30 years old)
Legal clients: 77%
Collateral*:
(Note: according to management estimates)
Average value: EUR 159th
Average 3M sale value: EUR 135th
Average 6M sale value: EUR 127th
Outstanding balances
(Dec 31, 2024)
for additional information
Geography by outstanding balance:
Time to maturity (Dec 31, 2024)
for additional information
Tallinn: 64%
Harjumaa:16%
Narva & Tartu: 9%
Other Estonia: 11%
Interest rates (Dec 31, 2024)
for additional information
LTV
for additional information
Collateral location (Dec 31, 2024)
for additional information
Schedule type
for additional information
Collateral type (Dec 31, 2024)
for additional information
Private clients’ age
for additional information
for additional information
Key lending strategies:
- The Company provides only collateral loans in the amount from EUR 2 000 up to 70% of market value of collateral, not exceeding 10% of the Credit Portfolio to one client/beneficiar
- Short-term lump-sum payment loans (bullet) and long-term annuity loans
- Conservative client appraisal
- The Company does not lend against illiquid real estate (e.g., small towns): Tallinn, Harjumaa, Narva & Tartu represent 90% of credit portfolio
Credit Portfolio Kredito Garantas Ltd. in Lithuania
BV of the credit portfolio:
EUR 24,8 M
Credit portfolio:
Average loan amount:
EUR 137 K
Clients:
Private clients: 1%
(all over 30 years old)
Legal clients: 99%
Repayment schedule:
Annuity 41%,
Bullet 59%
Portfolio by region and LTV
for additional information
Outstanding balances
(Dec 31, 2024)
for additional information
Time to maturity
(Dec 31, 2024)
for additional information
LTV
(Dec 31, 2024)
for additional information
Credit Portfolio Balt Credit Ltd. in Poland
BV of the credit portfolio:
EUR 12,7 M
Credit portfolio:
Average loan amount:
EUR 64 K
Average interest rate
24%
Repayment schedule:
Annuity only
Portfolio by region and LTV
for additional information
Outstanding balances
(Dec 31, 2024)
for additional information
Time to maturity
(Dec 31, 2024)
for additional information
LTV
(Dec 31, 2024)
for additional information
Portfolio for Refinancing
The portfolio for secure the investments has been selected from the existing loan portfolio to ensure maximum liquidity for the potential investor. The following criteria were applied:
| Location | EST / LT / PL |
|---|---|
| Overdue | 0 
|
| Collateral Coverage | < 65% |
| Maturity | Up to 10 years |
| Type | Apartments (50%), Houses (25%), Land (25%)
|
| Number of credits | ~150-175 |
| Total collateral value | at least 15 000 000 |
| Total outstanding balance *Aver.value of collat. : EUR 56 K |
5 000 000
|
| Collateral liabilities | 7 700 000 |
Outstanding balances
(Dec 31, 2023)
for additional information
Time to maturity
(Dec 31, 2024)
for additional information
Collateral coverage
(Dec 31, 2024)
for additional information
Proposed Loan Disbursement Process with Investor
Process
Preliminary approval of the collateral with the Investor
Phase 1
Loan standards are set up
Phase 2
Client examination and approval with Investor
Phase 3
Signing the loan agreement
Phase 4
Registration of the collateral; money transfer to the client
Approval of the loan portfolio with the Investor
Phase 5
Confirmation of the loan portfolio with the Investor/p>
Phase 6
Repledging collateral in the bank’s favour; closing the transaction
Financial Statements: Balance Sheet Statement
Financial Statements: Income Statement
Proposed Terms of Funding
LOAN TYPE:
Overdraft credit facility
LIMIT:
EUR up to 10 million
FUNDING DISBURSEMENT:
EUR 5 million – refinancing; 5 million – origination of new loans in Estonia, Lithuania and Poland
LOAN TERM:
up to 10 years, the first two years of the bullet, from the 3rd year annuity
EXPECTED INTEREST:
Up to 4% per year
INTEREST PAYMENTS:
Quarterly
PRINCIPAL PAYMENTS:
Quarterly
EARLY PREPAYMENT:
Allowed (clients are likely to make early loan prepayments or refinance)
TERMINATION OPTION:
The Company has a right to repay its remaining liabilities in accordance with the maturity of issued mortgages
LOAN QUALITY REPORTS:
Quarterly
INTEREST PAYMENTS:
Quarterly
PRINCIPAL PAYMENTS:
Quarterly
EARLY PREPAYMENT:
Allowed (clients are likely to make early loan prepayments or refinance)
TERMINATION OPTION:
The Company has a right to repay its remaining liabilities in accordance with the maturity of issued mortgages
LOAN QUALITY REPORTS:
Quarterly
Omega Laen AS is open to discussing your suggested terms of funding
Contact Information
Eduard
Kimask
Financial Manager,
Data Protection Specialist
Viacheslav
Zagoruiko
Financial Manager,
Data Protection Specialist
Jonas
Butkus
Financial Manager,
Data Protection Specialist
Information in this publication is intended to provide only a general outline of the subjects covered.
It should neither be regarded as comprehensive nor sufficient for making decisions, nor should it be used in place of professional advice.