Market environment
Bicycle rental systems have become more popular in recent years, just as the use of bicycles in general has increased. The reason for this is that they represent another alternative micro-mobility solution and reduce the burden on public transport. Environmental awareness is also growing strongly, motivating people to use more "green" means of transport. The corona pandemic has also led to the population avoiding crowded trains and buses, especially in cities, and switching to individual transport options.
Issuer
nextbike GmbH ("nextbike") was founded in Leipzig in 2004 and is the leading supplier of bicycle rental systems in Europe with a market share of 21.5%. Via the bicycle rental systems produced, sold or operated by nextbike, approximately 70,000 bicycles are currently provided in 23 countries at 200 locations worldwide (as of March 2020). Since 2017, Germany's largest bicycle rental system has increased its turnover by 65% to €28 million in 2019. At present, the company has already signed contracts worth €50 million over the next five years. nextbike pursues a dual business model with diversified, stable cash flows.
Investment concept
Revenues are generated, on the one hand, in the form of operating fees from the cities (operator model) and, on the other, through the sale of complete systems to external operators (licence model). In addition, under the operator model, nextbike collects user fees from end customers and generates revenues from the marketing of advertising space on the bicycles.
The proceeds from the issue of the secured bearer bond will be used by nextbike to finance the further development and production of bicycle rental systems, to finance regional expansion and to increase existing investments abroad. Investors who are invested in the current 2017/2022 bearer bond have the opportunity to exchange their previous commitment for the new bond. The bond is secured by a collateral pool consisting of the assignment of bicycles and rental stations as security, the assignment of receivables from operator contracts and the pledging of account balances as security.
