Month: February 2023

On February 17, 2023 AS Eco Baltia, the largest environmental and waste management group in the Baltics, issued 8 million EUR of its inaugural 3-year bonds with annual coupon rate 8%. Maturity date of the bonds is set on February 17, 2026 with an option for the issuer to call the bonds after 2 years.

Nominal value of each bond is 1,000 EUR. Bonds are issued at nominal value and minimum subscription amount for one investor was set at 10 bond units, or 10,000 EUR.

Subscription period of Eco Baltia’s bonds during public offering started on February 2, 2023 and ended on February 10, 2023. Issue was oversubscribed more than 3.5 times with orders from over 250 qualified and retail investors from Latvia and Lithuania. Total volume of received orders was 28.49 million EUR. Investors who placed the minimum order of 10,000 EUR were allocated in full, while bigger orders received partial allocations. Retail investors were very active in this transaction and were allocated 5.5 million EUR (69%) of the total issue with institutional investors making up the remaining 2.5 million EUR (31%). Most of the demand came from Latvian and Lithuanian investors with subscription amounts standing at 54% and 45% of total orders respectively.

The proceeds raised from bond issue will be used to finance future development projects of Eco Baltia, with a focus on supporting the company’s expansion plans in Europe and promoting the circular economy. The Group is currently evaluating several acquisition opportunities. In addition, the company has several capital expenditure projects in its pipeline.

On February 8, 2023 company applied for listing the bonds at Nasdaq Riga alternative market First North and on February 9 Nasdaq Riga started the admission procedure. Sole Lead Manager of the transaction was Luminor Bank together with Šiaulių bankas acting as Co-Manager and Dealer. Transaction legal counsel and Certified Adviser is law firm TGS Baltic, and trustee – law firm Eversheds Sutherland Bitāns.

AS Eco Baltia, the largest environmental and waste management group in the Baltics, with significant interest from investors issued 8 million EUR of its inaugural 3-year bonds. Issue was oversubscribed more than 3.5 times with orders from over 250 qualified and retail investors from Latvia and Lithuania.

“Eco Baltia’s successful bond issue and significant interest from investors is an affirmation to the strength and stability of our company. The high demand and oversubscription of more than 3.5 times of our bonds is a clear indication of the trust and confidence investors have in our company and its growth potential. We are grateful for this trust, which shows that Eco Baltia is on the right track and can move forward with confidence, executing its strategic goals to create long-term value for all our stakeholders,” says Māris Simanovičs, Chairman of the Management Board at Eco Baltia.

The proceeds raised from bond issue will be used to finance future development projects of Eco Baltia, with a focus on supporting the company’s expansion plans in Europe and promoting the circular economy. The Group is currently evaluating several acquisition opportunities. In addition, the company has several capital expenditure projects in its pipeline.

“Funds raised from investors will be used for acquisitions. Also it will allow company to continue on its successful path of strengthening its contribution towards circular economy promotion and implement further strategic initiatives,” says Vytautas Plunksnis, Partner at INVL Baltic Sea Growth Fund and Chairman of the Supervisory Board of Eco Baltia.

Total volume of received orders was 28.49 million EUR, more than 3.5 times exceeding the maximum amount of the planned bond issue. The size, quality and diversity of the orders enabled Eco Baltia to set the annual coupon rate at 8%, the lowest end of the indicated range. The tenor of the bonds is set at 3 years with the maturity date 17 February, 2026 and an option for the issuer to call the bonds after 2 years. Nominal value of each bond is 1,000 EUR. Bonds will be issued at nominal value and minimum subscription amount for one investor was set at 10 bond units, or 10,000 EUR.

Investors who placed the minimum order of 10,000 EUR were allocated in full, while bigger orders received partial allocations. Retail investors were very active in this transaction and were allocated 5.5 million EUR (69%) of the total issue with institutional investors making up the remaining 2.5 million EUR (31%). Most of the demand came from Latvian and Lithuanian investors with subscription amounts standing at 54% and 45% of total orders respectively.

 “Eco Baltia had all the prerequisites for the planned bond issue to be successful and for investors’ interest to result in significant demand. Solid business model, credit story and values resonated with investors and generated substantial interest in the transaction, both in Lithuania and Latvia. We are pleased to have been a part of this transaction and are happy to welcome our long-term customer Eco Baltia joining the Baltic capital market,” emphasizes Gints Belēvičs, the Head of Markets Customers in Luminor Bank, the Sole Lead Manager of the transaction.

On February 8, 2023 company applied for listing the bonds at Nasdaq Riga alternative market First North and on February 9 Nasdaq Riga started the admission procedure.

Sole Lead Manager of the transaction was Luminor Bank together with Šiaulių bankas acting as Co-Manager and Dealer. Transaction legal counsel and Certified Adviser is law firm TGS Baltic, and trustee – law firm Eversheds Sutherland Bitāns. Offering Document and Final Terms of the transaction are available at Eco Baltia’s website www.ecobaltia.lv section “Investors”.

AS Eco Baltia, the largest environmental and waste management group in the Baltics, has today successfully placed the maximum 8,000,000 EUR amount of bonds at the lowest end of the coupon range in the inaugural bond issue.

Full press release with more detailed information on the transaction will follow on Monday, 13 February, 2023.