Iute Group intends to increase its 12.00% 2025/30 bond by up to €140 million. The contemplated tap issue would support the continued growth of our business, loan portfolio, and digital banking ecosystem, as Tarmo Sild explains. Over the past years, Iute has evolved from a pure lending company into a broader digital banking group with multiple revenue streams. By 2030, Iute wants to be recognised as a leading digital bank with the most used super-app in every country where Iute operates. Today, it means 5 countries; by 2030, it could also mean 6 or 7 countries. It means as Sild explains at least one million active customers and at least two billion balance sheet, a minimum of four times growth.
BOND MAGAZINE: You intend to increase the volume of your 12.00% bond 2025/30 (ISIN: XS3047514446, WKN: A4D95Q) by up to €140 million. What is the rationale behind this transaction?
Sild: We want to grow. In the short Q3 term, the tap can be used to repay other liabilities, including the €47 million 2026 bond (ISIN: XS2378483494, WKN: A3KT6M) and other shorter liabilities. In a longer perspective, the 300M 2030 bond will form a strategic building block in our capital structure, complemented by other means of funding for Iute Group’s fincos and by banks’ deposits that fund the banks’ loan portfolios. Over recent years, we have established a strong and diversified investor base across Europe and further strengthened our position as a recurring issuer in the European high-yield bond market. The contemplated tap issue would support the continued growth of our business, loan portfolio, and digital banking ecosystem.
Over the past years, Iute has evolved from a pure lending company into a broader digital banking group with multiple revenue streams. That transition requires scale, diversification of capital structure, long-term capital combined with shorter capital, and continued investment into technology.
BOND MAGAZINE: Do you not see a concentration risk? If you place €140 million, the bond will have a total volume of €300 million– equivalent to 57% of your total assets – all of which will mature on a single day.
Sild: The repayment of the EUR 2025/2030 bonds has early amortization that starts in Q3 2029, where each quarter 7.5% of the principal amount will be repaid. The total maturity wall that we will face by December 2030 will amount to €200 million. I am confident in cash flows generated by our loan portfolio - and cash flows also create preconditions to bond redemption in cash, if the market no longer likes us in the future, or preconditions of refinancing if the market will like us in the future.
One should understand the dynamics of our business model. The average duration of our loan portfolio is significantly shorter than the bond maturity, creating continuous cash flow and refinancing flexibility.
Capital structure management is a continuous process, not a single-day event.
I would expect the refinancing exercise of the 2030 bond by the end of 2029. I would also expect the Group’s profitability, improving efficiency, and growing share of non-lending revenues to strengthen our resilience. We entered 2026 with comfortable covenant headroom, improving asset quality, and stronger operational performance. Even if there will be another global geopolitical disruption, or the effects of moneyprint and poorly managed public expenses and public debt will reach the private debt markets, we have resilience, and our Balkan customers have the resilience.
BOND MAGAZINE: How do you intend to utilize the capital raised from this bond issuance?
Sild: We will use the proceeds to refinance the maturing 2021/2026 EUR bonds and to grow. First, we aim to further optimise and simplify the Group’s liability structure by refinancing existing liabilities. Second, we continue investing in profitable growth areas across our digital banking ecosystem. That includes expanding the loan portfolio, scaling payment services, entering e-commerce, further developing data-driven and AI-driven solutions, the Myiute SuperApp, and insurance intermediation. Our strategy is about increasing customer lifetime value through bundled products, digital banking experience. Technology, data, and automation investments will help us scale the business more efficiently over time.
BOND MAGAZINE: Which other liabilities do you plan to refinance?
Sild: There is a short-term look and a long-term look. Short term, Q3, it is about liquidity and funding cost management. We need to address the short-term liquidity surplus and higher funding costs by reducing all other liabilities. We will have flexibility and capacity to repay even 140 million of other debt, so the Group’s balance sheet liabilities side will have a different structure. In the long term, besides refinancing the 2026 bond, I would expect the tapped capital to be deployed in the Group’s loan portfolio and other productive assets that we will make or acquire. By the end of 2026, we expect the Group’s balance sheet to exceed 600 million Euros - not a promise, but an aspiration of the Iute team.
BOND MAGAZINE: You aim to generate higher revenue per customer; how do you intend to achieve this?
Sild: Let’s compare our value proposition to a chocolate box. Hopefully, you like chocolate as I do - if not, then replace this metaphor with something that suits you. Now, our job is to expand the variety that is available for you. You may want white chocolate beside the dark one that you have already eaten enough. With financial services, there is the same - you may want and can afford only a certain amount of loans, but you may, for example, want to insure your health, assets, or travels, or you may want to start making your payments with a card, or you may want to earn redeemable loyalty points as recognition of your, er, loyalty. From the customer viewpoint, we are always short of personalized offers, too. I am short, and you are short. Why do I know that? Because, despite all the information that is available there about myself, I still get bad service and occasional feelings of alienation. If we overcome that feeling and create a feeling of personalized offer, smooth journey, the customer usage will increase, and so I believe will the money they pay as fees.
We intend to generate higher revenue per customer by increasing the number of useful financial services each customer uses within the ecosystem. Historically, consumer finance companies focused mainly on issuing loans. We are moving beyond that model. Today, customers use Myiute for payments, insurance products, and financing solutions in parallel. The more integrated and frictionless the ecosystem becomes, the greater the value for the customer and for us.
AI and data analytics are becoming increasingly important here. We use personalized recommendations and product bundling to improve customer relevance. The more we understand customer behavior, the better we can serve them. That is one of the reasons why revenue per customer increased by almost 12% year-over-year in Q1 2026. Importantly, priority is not to maximise revenue through pricing pressure. Long-term value creation comes from relevance, engagement, and ecosystem usage.
BOND MAGAZINE: Into which regions do you plan to expand?
Sild: Our focus remains on Southeast Europe and adjacent underbanked regions where digital financial services can leapfrog traditional banking infrastructure.
We are interested in markets where customers are digitally adaptive but financial services remain inefficient, fragmented, or overly dependent on legacy banking models. In many of these markets, financial products are still expensive, slow, and unnecessarily physical. That creates room for digital-first operators like Iute.
At the same time, we remain disciplined. We enter markets where regulation is manageable, digital adoption is accelerating, and where our technology platform can scale efficiently. Operations in Ukraine to acquire customers and start serving their everyday needs should commence in Q1 2027.
BOND MAGAZINE: What is your strategy regarding Ukraine?
Sild: IuteBank Ukraine was approved by the National Bank of Ukraine to operate independently. We have begun building operations with the aim of launching a fully digital bank for private customers in Q1 2027.
Ukraine is strategically important for us because we believe it will become one of the major growth stories in Europe over the next decade. Our assumption is that Ukraine remains independent, continues integrating with Europe, and rebuilds itself into a stronger and more modern economy, so demand for digital financial services will grow significantly.
We understand the risks and complexities very well. But interestingly, the biggest long-term risk is probably not the war itself. Ukraine already has a highly developed digital banking environment and very strong digital customer behaviour. The real challenge is keeping up with Ukrainians on speed, innovation, and customer experience. My takeaway from Ukraine for Europe is this - in 2026, we start to think of them as a security provider for the rest of Europe. In 2027, we will start to think of them as a modern smart banking provider model for Europe.
That is also one of the reasons why Ukraine is attractive to us. We believe we can learn there. Ukrainian financial technology and digital resilience are already among the most advanced in Europe because the country has had to adapt under extreme circumstances – cyberattacks, infrastructure disruptions, and wartime conditions. Building digital systems that function in such an environment creates valuable know-how.
We believe Ukraine’s reconstruction, European integration, entrepreneurship, and digitalisation will create a completely new economic environment over the coming years.
BOND MAGAZINE: Moldova ranks among your most important markets. Putin is fomenting unrest in Transnistria and facilitating the issuance of Russian passports there. How are you mitigating the risks associated with Moldova?
Sild: Moldova does carry geopolitical risks, but it’s not new to us since 2008. Over the last few years, Moldova has become more resilient economically, institutionally, and politically. The direction is clearly toward Europe. We see stronger institutions, more digitalisation, less dependence on Russian energy, and a growing understanding inside Moldova that long-term prosperity comes from integration with the European economic space.
About Transnistria, the only unrest that we see is related to who will effectively rule that landstrip after Russian resource flow stops and they become abandoned backyard that does not produce anything.
As Moldova moves closer to Europe, we expect more investment, more entrepreneurship, more cross-border movement of people and capital, and ultimately more demand for modern digital financial services. For companies like Iute, that creates long-term opportunity.
We should also not underestimate Moldova’s adaptability. Small countries can often move faster than larger systems when there is political will and strategic direction. We see that mindset increasingly clearly in Moldova today.
For us, Moldova remains worth the risk because it continues to be a market with strong long-term growth potential and an increasingly European future.
BOND MAGAZINE: What is your strategy regarding Energbank?
Sild: We are building a digital bank in every country where we operate, and Energbank in Moldova is moving in the same direction. We do it profitably. As a strategic milestone, after 4 years, the bank has returned to the Group as a dividend payment close to 50% of its acquisition costs. Our next strategical milestone is to launch digital onboarding - we cannot expect to onboard even 100,000 customers by asking them to pay a visit to one of 24 branches that we have kept. Energbank is therefore focused on transformation into a modern digital bank that combines strong banking fundamentals with customer-centric technology and digital services.
Another milestone is performance culture and strengthening Energbank management team with people with the right mindset. The bank has 3rd CEO since we acquired it and now we are satisfied with the performance. Recently, we appointed former LHV Group CEO Madis Toomsalu to the Supervisory Board of Energbank, subject to regulatory approval by the National Bank of Moldova.
Operationally, we already see integration progressing. The launch of the MyEnergbank app is the first step. It brings Iute’s technology and customer-experience principles to the banking environment, making services more accessible and intuitive. Over time, we see further potential in integrating banking services, payments, deposits, financing, and digital customer journeys into a single, customer-centric ecosystem.
BOND MAGAZINE: What features does the MyIute Wallet offer?
Sild: A major feature is access to ecosystem transactions, personalized offers, and loyalty. Ecosystem is larger than Iute company and its branches or balance sheet. Customers transact with our partners. Personalized is data-driven and truly personal - offers made to you are not the same as offers made to me. We want the Myiute superapp to be the first app customers open when they think about money. Customers can make payments, scan QR codes at merchants, manage their money, repay loans, access financing, purchase insurance products, and use cardless ATM services directly through the app. Everything is designed to happen digitally, instantly, and with minimal friction.
But functionality alone is not enough. The important aspect is ecosystem integration. The app surpassed 1.75 million cumulative downloads in Q1 2026. We focus on increasing frequency of use, ecosystem depth, and customer relevance.
BOND MAGAZINE: What is your vision? Where do you see the Iute Group positioned by the time this bond matures?
Sild: By 2030, we want Iute to be recognised as a leading digital bank with the most used superapp in every country where we operate. Today, it means 5 countries; by 2030, it could also mean 6 or 7 countries. It means at least one million active customers and at least two billion balance sheet, a minimum of four times growth.
That means significantly larger scale, broader product capabilities, and deeper integration into customers’ daily financial lives. We want Myiute to become the most used financial superapp in our markets.
Financially, I expect a business with a much larger share of non-lending revenues, stronger operational efficiency, and broader funding capabilities. Technology, AI-driven automation, and data science will play an even larger role in how financial services are delivered.
I want Iute to be known not as a lender of last resort, but as a digital bank of first choice.
The interview was conducted by Christian Schiffmacher, www.fixed-income.org
