Twino launches asset-backed securities
European peer-to-peer lender Twino has launched asset-backed securities on its platform for the first time since becoming a regulated investment platform.
The first security on offer is based on individual business loans issued to a loan originator in Poland. The term of the security is 3-12 months, which can be extended for a maximum of three times for a three-month period each time.
The security targets a fixed annual return of 12 per cent.
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Interest will be paid monthly with principal repayment at the end of the term. The interest will start accruing from the day of the issuance of the security.
Twino will not charge any fees related to investment on the product or selling it to other investors. However, it will be withholding tax on the profits that are obtained from securities.
Last year, Twino underwent a restructuring which involved becoming a regulated investment platform. It won its investment brokerage licence from the Latvian Financial and Capital Market Commission (FCMC) in September 2021.
This has allowed Twino to package its loans in the form of regulated financial instruments, which the platform calls ‘securities’.
Licensed investment brokerages are required by law to withhold income tax from individuals.
The standard withholding tax rate in Latvia for interest payments to non-residents is 20 per cent. However, if there is a double tax treaty between your country and Latvia, this tax rate can be reduced by adding a tax residence certificate on the ‘My Profile’ page.
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