Direct insurance company issues bonds with a four-year maturity and an annual yield of 6.85%. The issue is organized by a financial group Wood & Company. The minimum investment is 10,000 crowns.
The bonds can be purchased through the opPortunity investment portal, which falls under the platform Port from Wood & Company. The first round of subscription lasts until March 23. “After that, the bonds will be offered until they are sold out,” says Nela Maťašeje, a spokesman for Direct pojišťovna.
The bonds will be issued in the amount of up to 650 million crowns. The yield will be paid to bondholders semi-annually. “For example, with an investment of CZK 100,000, we will pay you CZK 2,911 twice a year, after tax, for a total of CZK 5,822 per year,” the insurance company writes in the investor prospectus.
“The issue comes to the market at a time of rising inflation and offers a very interesting return in relation to risk. This is a unique opportunity for Direct pojišťovna’s clients to participate in the development of their favorite company as an investor in addition to their customer role. It is therefore a unique connection between the investor and client communities, “says Peter Turner, Director of Investment Banking at Wood & Company.
The bonds are issued by Direct pojišťovna’s sister company, Direct Financing. The bonds are fully secured by the insurance company’s shares. Therefore, if the insurance company got into trouble and was unable to repay the bonds, the bondholders could take over the management of Direct pojišťovna and decide on its possible rescue. In 2021, Direct’s turnover amounted to 2.6 billion crowns and had a profit of 98 million crowns.
“We have been growing for seven years. This is due to innovation and the fact that the client comes first for us. But we want to innovate and grow even faster and show what a normal insurance company should finally look like. And the newly issued bonds are supposed to help us with that, “says Maťašeje.
Direct pojišťovna belongs to the Direct family group, which grew by Direct car and thus entered the world of car services. The group also includes Fidoo, which offers solutions for companies in the form of employee spending automation. Over the last two years, the turnover of the entire Direct family has increased from 1.8 to 5.9 billion crowns. Direct is wholly owned by the Vigo Investments group Pavel Řehákwho is also the Chairman of the Board of Directors of Direct pojišťovna.
Direct insurance company offers car insurance, property or travel insurance. On the contrary, it is missing from its offer Life Insurance.
According to statistics from the Czech Insurance Association, Direct was on the non-life market at the end of 2021 insurance eight according to the amount of the agreed premium. Its market share was 2.6%. Direct is the seventh insurance company Cardif with 2.7%, the first Generali Česká pojišťovna had 28.3%.
From domestic financial institutions bonds recently issued by Fio Bank. They were six years old and with an annual yield of 5%. The bank sold them at the turn of December and January and reported great interest. She sold bonds worth 600 million crowns in 13 trading days.