Celebrating Success: Indemo's First Discounted Debt Cycle Comes to a Close
Introduction:
Today, we're thrilled to share the Indemo community's long-awaited event - the closure of our first discounted debt cycle. This marks a moment of celebration for our beloved Indemo community, who have already tried out and invested in discounted debts, bringing them tangible returns.
At Indemo, innovation drives our vision. We were the first to introduce investments in secured non-performing debts as a new investment asset class to the retail world. Now, we offer retail investors from all over Europe the opportunity to invest in real estate-backed debts bought from banks in Spain.
How First Debt Repayment has Impacted Indemo Community:
The first debt repayment has impacted 65% of our investor community and generated EUR 246,000 in cash. Thirty Notes funded on Indemo had exposure to this particular debt repaid. The actual return on investment of investors' portfolios has varied from 22% to 118% per annum.
Indemo CEO and Co-Founder Sergejs Viskovskis greeted the Indemo community with this remarkable event, saying: “The first debt repayment on Indemo proved that investing in discounted debts can bring double-digit high returns to our investor community while investing in residential real estate from the safe harbor region of Spain through a licensed and supervised investment platform. At this moment, Indemo stands as the top-performing real estate investing platform.” Please keep in mind that past performance is no guarantee of future results.
The Case: A Closer Look:
Let's delve into the specifics of this success story. The debt A81 in question was backed by a residential property, as are all other Discounted Debts offered on Indemo - a 119 m2 large apartment located on the west coast of Ibiza, Balearic Islands, Spain. The apartment was situated in a private complex, close to restaurants and beaches.
The debt was first listed on the Indemo platform in June 2023, with the Flow stage of “Submission confirmation”. Throughout its tenure on the platform, the debt underwent several Flow stage changes, eventually reaching the “Auction Initiated” collection stage.
The debt was sold on the debt secondary market to a debt buyer who focuses on the auction and post-auction stages.
Understanding the Servicer's Decision:
Our cooperation partner, the servicing company placing debts on the Indemo, follows the policy embodied in the Notes prospectus, which essence is that the servicing company aims to ensure settlement and pre-court foreclosure as the highest priority over the judicial procedure, as it allows the invested money to rotate faster and generate high double-digit returns for investors.
This means that the servicing partner, while in each case going through the debt legal recovery procedure (which actual stages you can see in the Flow chart on the platform), usually also works on alternative scenarios, for example, selling the pre-possession debt before entering into legal possession. The servicing partner is focused on the fastest exit scenario, given the expected return of 15.1% p.a.
The servicing company in the A81 debt case determined that the sale of the pre-possession debt to another buyer is the better scenario to ensure shorter return timing while providing attractive returns to investors.
This case is a good landmark for the Indemo community to understand how the debt secondary market behaves, meaning that debts bought from banks in the early recovery stage have a lower purchase price (and higher discount), compared to debts which have already advanced in the legal recovery flow having a higher purchase price (being more expensive) closer to the auction and post-auction stage.
Understanding how Debt Repayments Impact Your Notes:
When you invest in Notes on Indemo, you get exposure to a basket of eight underlying debts. The debts are being rotated on the platform over time before the debt is sold through funded Notes in full.
When A81 debt is recovered, it will impact a list of Notes funded on Indemo which had exposure to this debt. This means that when one single debt is recovered, investors get both invested funds repayment and profit extraction through interest payment.
Understanding Your Investment Performance:
As an investor, you may be eager to understand how A81 debt recovery impacts your Notes portfolio, your returns, and your overall investment performance. To make our customers' lives easier, we've just reshaped the Portfolio view on our platform. We encourage you to go through the detailed new Portfolio view introduction in the dedicated article of our Blog.
You might find information on your returns and the amount of profit (interest) earned by visiting the Portfolio section in your private profile inside the Indemo platform.
Taxation of the Income Paid Out:
You may notice that the amount actually paid to your account balance differs from the profit amount indicated in your Portfolio.
We would like to remind you that you invest in securities on Indemo, where Indemo by law should serve as a tax withholding agent. Usually, the applicable tax rate ranges from 5% to 20% of the amount of interest (profit) earned. Please visit our FAQ section for more information on the application of tax: https://www.indemo.eu/faq.
You can also see the total amount of interest paid and the amount of tax applied in the Statement section described above.
Next Steps and Future Opportunities:
As we celebrate this milestone, you may wonder about your next steps and what to do with the repayments that just hit your account.
Our suggestion is to make your money work once again, meaning reinvesting funds into the Notes again to approach financial independence.
We have just placed new notes with debts enclosed having recovery stages similar to the A81 debt just closed. These Notes have a high Flow level indicating high potential in swift debt recovery.
This content is a marketing communication. It shall not be treated as investment advice, independent research or offer, recommendation or invitation to invest in the investment opportunities referred to herein. The content is not aimed at promoting services or products to persons based in jurisdictions where the distribution of said information would be illegal.
Investing in financial instruments involves risk, and there’s no guarantee that investors will get back invested capital. Moreover, past performance does not guarantee future returns. Indemo SIA shall not be responsible for any direct or indirect loss from using the provided information.