VEF has announced a USD 25m follow-on investment in Creditas. Creditas is VEF’s largest portfolio holding and one of the leading digital secured lending platforms in Latin America. The investment has been made in the form of a convertible loan note. The note will convert in the next funding round in Creditas, anticipated to close in early 2022. The investment is expected to have a materially positive effect on VEF’s NAV, a ~30% uplift from the latest reported NAV (USD 160-170m). Investment more than doubles fair value of Creditas We like the fact that VEF keeps focusing and investing in its winners. Creditas represents 30% of VEF’s NAV as per Q3’21 and posted a very strong Q3’21 report, showing a reacceleration in growth after a COVID-19 dip during 2020, when the company temporarily scaled back its growth ambitions due to market uncertainty. Q3’21 was the company’s strongest quarter to date, with new loan origination reaching a record of BRL 938m, up 53% q-o-q and 313% y-o-y. The consumer credit book has almost reached BRL 3,000m, and was up 181% y-o-y. Since Q4’17, the credit book has grown by a CAGR of 149%. Revenue as a percentage of the average credit portfolio has trended up from Q2’20, coming in at 42% in Q3’21. This means that revenue has grown even faster than the credit portfolio: in Q3’21 it grew by 233% y-o-y. Given this follow-on investment, the fair value of Creditas increases from USD 169m to ~USD 360m, up more than 110%. The share is now trading at a discount to NAVPS The stock closed yesterday at SEK 5.57 and was trading at a 12% premium to the latest calculated NAVPS. Including this new follow-on investment in Creditas and the material NAV uplift, VEF is now instead trading at a 7% discount to its latest calculated NAVPS of ~SEK 6.40. The stock has traded at a prem ... Läs mer på Introduce
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