Topic: [GLBSE] LOANEX bond IPO - Micro Financing in South Africa (Read 3282 times)
reserved
Please read the full prospectus available at http://loanexpress.co.za/GLBSE1.pdf
My name is Johann du Toit and I’m the founder and co-owner of Insurgency Finance Pty Ltd (trading online as Loan Express). Loan Express is an online loan broker operating in the South African micro finance sector. We operate in South Africa and provide loans to customers who might not normally have access to finance in the traditional banking industry. Typical loans are for small amounts of less than US$1000 (ZAR300-ZAR8000).
After 7 years of success in the business we have reached the limit of what we can achieve as only a broker - essentially an online lead generation channel. We receive hundreds of online applications every day. However we are planning on taking this to the next level.
I am offering an unsecured bond to raise money for issuing our own loans to clients in South Africa, rather than reselling third party loan offerings.
The micro finance industry is tightly controlled by law via the National Credit Act (NCA) of 2006. We are in the process of starting a brand new company, along with a new co-founder who has 20 years industry experience and all the necessary contacts to make this a success. Our company will have full NCR compliance and work within strict guidelines and lending limits.
Me and the other founders are using our own funds to pay for the new company’s infrastructure, legal compliance and day to day operations. However we are turning to the bitcoin community in order to raise the funds of the lending principal - the money which we are going to loan out to our clients. We are aiming to provide a stable and realistic investment opportunity to all bitcoiners, backed by a successful real life business.
The return might not be typical of other previous GLBSE listings, and so will definitely not be for everyone. However it does provide better returns than typical “real life fiat” investment opportunities. We believe there is a demand for this financial product in that it will add a more conservative and healthy option for investors to add to their diverse portfolios and offset some risk.
I am issuing unsecured bonds on GLBSE that will return 24% annual interest paid monthly (2% per month). Interest will be non-compounded and only on the face value of the bond. A total of approximately equivalent to $125,000 is expected to be ultimately raised with this offering. All bond funds will be used exclusively for issuing the loan principal to clients, and won’t be used for administrative or business operating costs.
Operation
Every LOANEX.10.1 bond has a face value of (100/(X*Y)) BTC,
where X is the last USD price at which BTC was traded on Mt Gox; and
where Y is the last ZAR price at which USD was traded on the international forex markets.
For example, at the time of writing, the USD/BTC exchange rate for roughly $12 per BTC, and the ZAR/USD exchange rate was roughly R8 per USD. Thus X = 12, and Y = 8, meaning that the face value of the bond is 1.04167 BTC.
This means that the face value is effectively equal to 100 South African Rand.
The issuer has the right to buy back bonds for 112% of their face value.
If the services on which this bond relies (Mt. Gox and GLBSE) can no longer serve their purpose, the bonds will be bought back, if possible, for their face value, determined by the last meaningful data.
Every month on the last business day of the month, at or before 20:00 EDT time (GLBSEtime), bondholders will receive a coupon per bond of 2% the bond face value.
If the coupon is not paid on time, a bonus of 0.1% per bond will be paid for each calendar day between the scheduled date and the actual payment date. The delay will in no circumstance be longer than 2 weeks.
This bond has no expiration date.
The issuer is the person of Johann du Toit.
The issuer is responsible for abiding by the terms of the contract.
This bond is unsecured. The bonds are not guaranteed by the issuer, Johann du Toit, or by any other member of Insurgency Finance Pty Ltd or affiliated companies.
The issue amount of the Bonds is up to $125,000 in USD equivalent, with the ability to accept another $500,000 in oversubscriptions. Oversubscriptions, if accepted, will be allocated at the discretion of the bond issuer.
IPO Details
The IPO will be on Monday the 1st of October 2012 at 1:00 AM GMT.
12,500 bonds will be initially issued.
Up to 2,500 bonds will be put up for pre-IPO sale. They will be sold at a 2% discount. This is only available to investors buying at least 100 bonds. Send me a PM to reserve your spot.
The scheduled coupons will be paid starting October 31.
My name is Johann du Toit and I’m the founder and co-owner of Insurgency Finance Pty Ltd (trading online as Loan Express). Loan Express is an online loan broker operating in the South African micro finance sector. We operate in South Africa and provide loans to customers who might not normally have access to finance in the traditional banking industry. Typical loans are for small amounts of less than US$1000 (ZAR300-ZAR8000).
After 7 years of success in the business we have reached the limit of what we can achieve as only a broker - essentially an online lead generation channel. We receive hundreds of online applications every day. However we are planning on taking this to the next level.
I am offering an unsecured bond to raise money for issuing our own loans to clients in South Africa, rather than reselling third party loan offerings.
The micro finance industry is tightly controlled by law via the National Credit Act (NCA) of 2006. We are in the process of starting a brand new company, along with a new co-founder who has 20 years industry experience and all the necessary contacts to make this a success. Our company will have full NCR compliance and work within strict guidelines and lending limits.
Me and the other founders are using our own funds to pay for the new company’s infrastructure, legal compliance and day to day operations. However we are turning to the bitcoin community in order to raise the funds of the lending principal - the money which we are going to loan out to our clients. We are aiming to provide a stable and realistic investment opportunity to all bitcoiners, backed by a successful real life business.
The return might not be typical of other previous GLBSE listings, and so will definitely not be for everyone. However it does provide better returns than typical “real life fiat” investment opportunities. We believe there is a demand for this financial product in that it will add a more conservative and healthy option for investors to add to their diverse portfolios and offset some risk.
I am issuing unsecured bonds on GLBSE that will return 24% annual interest paid monthly (2% per month). Interest will be non-compounded and only on the face value of the bond. A total of approximately equivalent to $125,000 is expected to be ultimately raised with this offering. All bond funds will be used exclusively for issuing the loan principal to clients, and won’t be used for administrative or business operating costs.
Operation
Every LOANEX.10.1 bond has a face value of (100/(X*Y)) BTC,
where X is the last USD price at which BTC was traded on Mt Gox; and
where Y is the last ZAR price at which USD was traded on the international forex markets.
For example, at the time of writing, the USD/BTC exchange rate for roughly $12 per BTC, and the ZAR/USD exchange rate was roughly R8 per USD. Thus X = 12, and Y = 8, meaning that the face value of the bond is 1.04167 BTC.
This means that the face value is effectively equal to 100 South African Rand.
The issuer has the right to buy back bonds for 112% of their face value.
If the services on which this bond relies (Mt. Gox and GLBSE) can no longer serve their purpose, the bonds will be bought back, if possible, for their face value, determined by the last meaningful data.
Every month on the last business day of the month, at or before 20:00 EDT time (GLBSEtime), bondholders will receive a coupon per bond of 2% the bond face value.
If the coupon is not paid on time, a bonus of 0.1% per bond will be paid for each calendar day between the scheduled date and the actual payment date. The delay will in no circumstance be longer than 2 weeks.
This bond has no expiration date.
The issuer is the person of Johann du Toit.
The issuer is responsible for abiding by the terms of the contract.
This bond is unsecured. The bonds are not guaranteed by the issuer, Johann du Toit, or by any other member of Insurgency Finance Pty Ltd or affiliated companies.
The issue amount of the Bonds is up to $125,000 in USD equivalent, with the ability to accept another $500,000 in oversubscriptions. Oversubscriptions, if accepted, will be allocated at the discretion of the bond issuer.
IPO Details
The IPO will be on Monday the 1st of October 2012 at 1:00 AM GMT.
12,500 bonds will be initially issued.
Up to 2,500 bonds will be put up for pre-IPO sale. They will be sold at a 2% discount. This is only available to investors buying at least 100 bonds. Send me a PM to reserve your spot.
The scheduled coupons will be paid starting October 31.
Jump to: