What is the difference between investments in loans and Loan Securities?

Historically TWINO platform offered investments in loans (claim rights), where an investor could purchase rights to receive loan repayments from the borrower. These investments were based on an assignment agreement, which specified terms of the investment. Investments in loans were protected by BuyBack and Payment guarantees. However, since TWINO became a licensed investment brokerage company, it could no longer offer investments in loans since these products were not regulated.

Loan Securities, on the other hand, are regulated financial instruments. These are asset-backed securities that provide investors with an opportunity to invest in business loans issued to Loan Originators, who then use the funding to issue loans to individual borrowers. The principal and interest repayments for Loan Securities mirror the corresponding payments received from the Loan Originator. As the Loan Originator has the obligation to repay the business loan, neither the BuyBack nor the Payment guarantee is applied to these investments. Instead, investors are protected by the investor protection scheme.

More information about Loan Securities can be found in the corresponding Base Prospectus and Final Terms.

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