IPF returns to profitability and plans bond refinancing

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International Personal Finance PLC (LON:IPF) has proposed a refinancing after it had returned to profitability in the third quarter due to more effective collections and cost savings.

Shares in the sub-prime lender surged 12% to 59.4p in early trading on Wednesday.

The company, which is focused on Central Europe and Mexico, said collections effectiveness had improved to 95% in the past quarter, while its “prudent relaxation of credit settings” had led to a 55% increase in credit issuance compared to the second quarter.

A series of actions were announced to improve the funding position of the group, including a proposed refinancing of the EUR397mln of Eurobonds due in 2021 along with solicitations of consent to amend covenants on sterling and Swedish krona bonds due in 2023 and 2022 respectively.

IPF said it was also making progress in discussions on the amendment of bank covenants in respect of GBP123mln of facilities.

Chief executive Gerard Ryan said completion of the refinancing “will provide the foundation on which we will continue to enable financial inclusion of underbanked and underserved customers by fulfilling their credit needs responsibly, and in turn, deliver long-term growth and value to all our stakeholders”.

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