“Tier 2 capital” is a term from banking and financial regulation. It refers to a specific layer of a financial institution’s capital that regulators consider as supplementary capital (as opposed to core “Tier 1” capital such as common equity).
As a regulated investment firm, Mintos must maintain minimum capital levels to ensure stability (similar to how banks have capital requirements). Tier 2 capital typically includes subordinated debt with long maturities. It serves as a backup funding layer for Mintos, capable of absorbing losses similar to equity. By investing, you’re helping Mintos strengthen its financial base, and in return, you’re offered a high interest rate. Refer to the base prospectus for more information.