Author: ecobalt

Environmental management company Eco Baltia vide’s subsidiary in Lithuania, Ecoservice, has invested 700 000 EUR in a new and the first-of-its-kind construction waste sorting line in Lithuania. This will ensure that an even larger amount of construction waste can be reused and will also increase the overall capacity of construction waste sorting. While approximately 60% of the sorted construction waste could be returned to circulation before, with the new and partially automated equipment, this proportion will increase up to 82%.

“Considering the increasing volume of construction waste and the need to ensure their reuse, within the companies of Eco Baltia, we are purposefully developing construction waste sorting possibilities and new technological solutions. Ecoservice has already completed a modernization project for the existing construction waste sorting area, installing new and more efficient equipment that will double the company’s construction waste sorting capacity. Meanwhile, in Latvia, Eco Baltia vide is developing a completely new construction waste sorting area, so that we can expand our services in more sustainable construction waste management for Latvian clients,” says Jānis Aizbalts, Head of the Environmental Management Sector at Eco Baltia.

The new equipment installed by Ecoservice is semi-automated, ensuring maximum efficiency in sorting the most common types of construction waste: cement, sand, gravel, various films and cardboard, tiles, metal, wood waste, screws, drywall, etc. The new sorting line provides construction waste sorting in 13 different categories. Separated clean rubble and gravel can be used in road and sidewalk construction, wood materials can be used as secondary raw material in various furniture details production, while metal, plastic, cardboard and films can be recycled into new secondary raw materials.

“We estimate that the Ecoservice’s construction waste sorting capacity will double thanks to partial automation and the ability to sort wider types of materials. These investments will also significantly improve efficiency – both the speed and quality of the sorting process. Our goal is to use waste as resources as effectively as possible. Previously, 60-70% of construction waste was reused and recycled, but with the new sorting line, we will increase this indicator to up to 82%, leaving only a small amount of waste that for incineration,” explains Mindaugas Šeštokas, Head of Production at Ecoservice.

Tallinn/Riga/Vilnius, Nasdaq Baltic Market, March 2, 2023 – Nasdaq (Nasdaq: NDAQ) announces that bonds issued by Eco Baltia, the largest environmental and waste management group in the Baltics, have been admitted to trading on the Nasdaq Baltic First North market by Nasdaq Riga as of today.

The size of Eco Baltia bond issue is EUR 8 million. The nominal value of bonds is 1 000 EUR with annual coupon rate 8%, paid twice a year. Maturity date of the bonds is set on February 17, 2026.

The listing of Eco Baltiabonds follows its public offering to Latvian and Lithuanian investors. Based on demand for the bonds, the offering was oversubscribed more than 3.5 times with total volume of 28.49 million EUR from more than 250 private and institutional investors.

CEO of Nasdaq Riga Daiga Auziņa-Melalksne: “We are excited to partner with Eco Baltia and delighted to celebrate their successful entry to stock exchange. We look forward to growing our partnership and supporting Eco Baltia growth and we wish the company success in achieving their further business and sustainability goals!”

„Joining the capital markets and listing our inaugural bonds on Nasdaq stock exchange is significant milestone for Eco Baltia, signaling confidence in our growth prospect and providing access to a wider range of investors in the future. We are determined to fulfill our strategic goals by expanding our operations and promoting circular economy in international level and balance our growth ambitions with strong ESG strategy, financial discipline and transparency, ensuring that we meet our obligations to the investors and other stakeholders,” says Māris Simanovičs, Chairman of the Management Board at Eco Baltia.

“Funds raised from investors will be used for acquisitions to achieve the strategic goal of developing the environmental and waste management group as a strong regional leader. Listing the bonds on the public market will also undoubtedly increase Eco Baltia’s visibility to investors,” says Vytautas Plunksnis, Partner at INVL Baltic Sea Growth Fund and Chairman of the Supervisory Board of Eco Baltia.

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”.