Qelo Issues 3000 Bonds for Three Years with an Eight Percent Interest Rate

The company enasolAuto and its brand Qelo, which provides electric vehicle charging services, will offer citizens three thousand convertible bonds with a nominal value of one thousand euros, with an annual interest rate of eight percent, starting next Monday, March 24. Holders of these bonds can expect semi-annual interest payments, and after three years, they will receive the full principal amount or have the option to exchange the bond for equity in the company. This was announced today by the CEO of enasolAuto, Predrag Šeatović, and members of the management board, Tomislav Kajdi and Tomislav Ivanetić.

With these funds, they intend to expand their network of fast chargers to a total of 18 locations with 60 charging points. Currently, they are present at 14 locations with 43 chargers. Part of the funds will also be used to improve the Qelo card service, which is used for purchasing energy at all chargers in Croatia and 800,000 chargers in the European Union.

– Building a quality charging network is a financially intensive endeavor that we are undertaking by applying several methods to raise funds for these investments. We started with the sale of equity shares and are continuing with the issuance of bonds. The next step will be the construction of chargers financed by commercial bank loans. For this stock offering, we were guided by the idea of providing investment opportunities for those who wish to invest smaller amounts – stated Šeatović.

Before the expiration of the three-year term, this bond can be traded in the domestic securities market, allowing investors who wish to quickly recoup part or all of their principal to liquidate their assets. Additionally, by the end of this term, the bond issuers must secure three million euros exclusively for the repayment of principal to investors, or a proportional amount of equity in the company, in accordance with its valuation, which will be conducted by independent appraisers.

These are not small obligations for a company that has practically just begun commercial operations. So far, Qelo has achieved impressive growth, as it has increased its revenue from 40,000 euros in 2023 to 202,000 euros in 2024, and this year they expect further growth to over 750,000 euros in revenue. Their optimistic forecasts and business model are based on the development of electromobility, and according to their own estimates related to projections of the growth of electric vehicles in Croatia, by 2028 they could start counting revenues in eight-digit amounts. For this, they need to develop the charging network.

– The development of electromobility requires a robust and reliable infrastructure as well as practical and convenient charging services. Qelo is a charging service, and we must develop the network to ensure stability in service provision and improve the market situation. To achieve our plans, we need to build the network – said Šeatović.

However, Qelo finds about a third of its revenue in charging services on other networks, for which it also pays fees to its competitors, but this remains beneficial for them as foreign tourists, due to the reliability of their service via the Qelo card, make up a quarter of their users in Croatia. This is also reflected in the seasonality of their revenue. Specifically, around 20 percent of their revenue is generated in August. They send invoices for their services to users once a month, thereby avoiding unnecessary complications with prepaid services, and they have announced that they will soon enable POS payments at their locations. Will the founders themselves also purchase the bonds they are offering?

– Yes, we will – said Šeatović.

Of course, they are not issuing them solely to acquire them themselves; there will be enough for all interested parties who can express their interest by filling out a form at https://obveznice.qelo.eu/, where they can also find more information about the terms, risks, and potential returns. Individuals who express interest and provide correct information will be entered into the registration book, and upon its closure, they will be invited to pay for as many shares as they have reserved. After the bonds are created, all investors will receive a notification from SKDD about the new bonds and their account status in SKDD, and if they do not have an account, one will be created automatically.

As stated in the presentation of this investment, they plan to build new locations in shopping centers, along highways, in Croatian cities, and tourist centers, and after completing a total network of 140 ultra-fast connections at more than 30 locations, they also plan to expand into neighboring areas and would like to invest in their own renewable energy projects.