The Frankfurt FinTech CAPTIQ, announced yesterday that has successfully completed the first bond placement and received an investment commitment of EUR 30 million from BayernInvest. INNOFINCENTA advised CAPTIQ on this transaction. The funds from this first bond will be used to refinance low-volume loans exclusively for chamber professionals and can be accessed via the platform according to the loan demand.
CAPTIQ GmbH has successfully placed its first bond to refinance to chamber professionals (pharmacists, architects, doctors, lawyers, auditors, etc.). BayernInvest subscribed to the issue of the EUR 30 million bearer bond with a ten-year term. The bearer bond was given an investment grade rating (BBB- restricted) even before credit was granted via the Creditreform platform. With this risk classification and a targeted return of approx. 2.60 percent pa, the CAPTIQ fulfills-Bond the requirements of risk-averse and long-term oriented investors such as Depot-A-Managers, insurance companies or pension funds. Furthermore, the bearer bond is provided with a 10% default guarantee, part of which is contributed by CAPTIQ itself. This bond is the first of a German alternative financing platform that can boast an investment grade rating and that has secured refinancing from institutional investors before the market launch of the loan offer. In this way, CAPT IQ distinguishes itself from P2P business models in which many small amounts are collected from private investors (“crowd”) and passed on as private or corporate loans.
Innovative offer for undersupplied EUR 8 billion credit market
“After well-known investors from the German and international financial scene have invested in CAPTIQ , the successful bond placement is further evidence of the attractiveness of our business model and the targeted loan portfolio”, commented managing director and founder Soraya Braun on this important milestone. “We are very pleased about this additional confirmation of our approach, which offers risk-averse and long-term oriented capital managers access to a new asset class with an attractive risk-return profile”, added co-managing director and co-founder Lorenz Beimler.
CAPTIQ has developed the first alternative online financing solution that is tailored to the needs of chamber professions, the majority of which are freelancers. The loans, which are brokered via the CAPTIQ platform, address in particular financing inquiries below 250,000 euros, which, given the current market conditions, are hardly economically viable for commercial banks, are hardly reached by development banks and thus remain undersupplied. The financing volume in demand in this segment in Germany amounts to around 8 billion euros.
The key to the business model is an automated credit rating model and a B2B platform that simplifies the granting of loans and integrates financial advisors and banks into the sales model.
“With its concept, CAPTIQ addresses two undersupplied markets, bringing them together through the innovative use of digitized processes and with the involvement of established market participants”, says Alexander Banik, Head of Portfolio Management Key Accounts & Execution at BayernInvest. “The risk structure of the potential loan portfolio meets our requirements very well. We have not yet been able to invest in this asset class due to a lack of offers. “
CAPTIQ expects the launch of the credit platform in the first quarter of 2021 and, if there is sufficient demand from borrowers, plans to issue further bonds and place them with institutional investors.