Since the beginning of the geopolitical conflict, we work daily to find an efficient solution for the repayment of the debt of Kviku in full, with the purpose this to happen as soon as possible and as satisfactory as possible according to the interests of the investors.
In the past months, with the professional help of a top law firm in this field with offices in Russia, which iuvo hired, we got familiar in detail with the possible options for an efficient and fast repayment of the originator’s debt to the investors by complying with the restrictions imposed by the Russian Federation. We tried different options, which were also approved by Kviku, so we can find the most satisfactory option that actually works.
After many actions taken by us, options that we have tried, and inquiries made to the relevant institutions regarding the repayment of Kviku’s debt, the originator by its own initiative and following the instructions of the Russian Central Bank decided the repayment to happen by issuing discounted bonds on iuvo’s name. The discounted bonds do not generate profit in the form of interest, and on maturity, the creditor receives the full nominal price, which means that this action does not excuse Kviku from their debt to the investors.
To issue such bonds, it is not needed to get the consent of the creditor, in this case iuvo, when the bonds are on the entire amount of the debt, like in this case. Kviku did not receive our consent to issue the bonds. According to the professionals from the hired by iuvo law firm, based on the Russian legal framework, the process of issuing the bonds is carried out based and in accordance with the decree of the president of the Russian Federation regarding repayment of debt to creditors from “unfriendly” states and the approval of the Russian Central Bank is received.
The bonds are issued in Russian currency with conversion rate 1 EUR = 63,0504 RUB, which means that the debt of Kviku to the investors is converted to RUB at this rate. The maturity date of the bonds is 30.04.2025, and after that the amount of Kviku’s debt, which includes the invested amount in loans and the acquired interest according to the repayment of the loans, will be paid in a “C” type bank account under the name of iuvo in a bank in Russia. In case the decree of the Russian president regarding “unfriendly” states is not repealed or amended until the maturity of the bonds, the received funds in a “C” type account cannot be transferred outside of the Russian Federation. As of now, funds in such accounts can only be used for just a few transactions within the Russian Federation, like to be transferred to another “C” type account or to buy certain securities.
Additionally, we expect to receive the financial report of Kviku for their results in 2022. This information is important regarding the repayment of their debt on maturity. As soon as we receive the report, we will share it on our website to be accessible by investors.
Regardless the decision for the repayment of Kviku’s debt through discounted bonds, which is already effective, at iuvo, we continue to follow the development of the situation, but unless there is a sudden change in the geopolitical circumstances in a positive direction, Kviku will repay their entire debt when the bonds mature in 2025.
Are Kviku free from their contractual obligations and will there be change for me?
Kviku are not excused from their contractual obligations, but by issuing the bonds, their entire debt is converted to RUB. Until receiving actual payments, iuvo will not take additional actions to convert the EUR investments on the platform in RUB.
When can I expect to receive my money?
The maturity of the bonds is 30.04.2025, and it is when the originator is obligated to repay the debt. Meanwhile with the assistance of local law firms and in accordance with the changes in the geopolitical circumstances, we are ready to take the needed actions to protect the interests of the investors for the repayment of Kviku’s debt.
What is the current state of Kviku?
We are in communication with the originator and at the moment, there is no indication for deterioration of their financial state. We expect to receive the annual reports of Kviku, so we can have more specific observation, which we will share.