Author: Gunita Krilova

Eco Baltia has redeemed all EUR 18 million of issued bonds

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On February 17, Eco Baltia, the largest environmental resource management and recycling group in the Baltics, fully fulfilled all its obligations in relation to the bonds it had issued: it redeemed €8 million bonds on maturity and redeemed €10 million of unsecured bonds nine months ahead of schedule at 101% of their nominal value, including accrued interest. This step confirms the company’s long-term financial stability and its ability to manage capital market obligations responsibly and on time.

“The bond market enabled us to diversify our funding sources and strengthen both our financial and corporate governance standards. At the same time, it has supported the Group in taking strategic steps forward in its development and financial planning, including strengthening the company’s resilience in changing market conditions. The successful bond issues and the high investor interest demonstrated that Eco Baltia is a well-recognized and trusted issuer, forming a solid platform for the next stage of our development. We are grateful to 350 investors from Latvia, Lithuania and Estonia for their trust and participation in both bond issues,” says Māris Simanovičs, Chairman of the Board of Eco Baltia.

The fulfilment of bond obligations, including the early redemption of the EUR 10 million issue, followed the group’s refinancing transaction, which was finalized in December last year. This transaction secured longer-term financing, enabling the optimization of the liability structure while maintaining predictability and financial discipline.

Santa Spūle, CFO and Member of the Board of Eco Baltia, notes: “The refinancing we completed allowed us to restructure existing financial liabilities while also securing additional financial capacity to plan cash flows more flexibly and adjust the level of available financing to actual needs. This enabled us to conclude the bond financing phase in a planned manner and meet our obligations to investors, while continuing to work on the company’s long-term strategic development.”

About Eco Baltia’s bond issues and their redemption

In February 2023, Eco Baltia issued its first unsecured bonds, worth EUR 8 million, with an interest rate of 8% over a three-year term. Investor demand for the bonds exceeded the offering by 3.5 times. They were repaid at their scheduled maturity on 17 February 2026.

In November 2023, Eco Baltia issued bonds for the second time, placing a three-year, €10 million unsecured bond issue with a 9% interest rate. Investor demand was strong once again, exceeding the offering by 1.7 times. In accordance with the terms and conditions, the company exercised its option to fully redeem these bonds early on 17 February 2026 at 101% of nominal value, also paying accrued interest (accrued up to, but excluding, the redemption date).

“We invested in Eco Baltia in 2020, and during our management period, the company expanded from operating solely in Latvia to establishing its presence in Lithuania, Poland, and the Czech Republic. Access to capital markets was an important part of our strategy, ensuring sustainable growth. Therefore, we do not rule out the possibility of returning to the capital markets with new projects,” says Vytautas Plunksnis, Partner at INVL Baltic Sea Growth Fund and Chairman of the Supervisory Board of Eco Baltia.

Eco Baltia, the largest environmental resource management and recycling group in the Baltics, together with the leading private equity fund in the Baltic States INVL Baltic Sea Growth Fund, has increased its stake in Metal-Plast, Poland’s largest PVC window and door frame recycling company, from 70% to 83%. The transaction was completed by investing EUR 2.2 million in the company’s capital.

This capital increase strengthens Metal-Plast’s balance sheet and provides the resilience needed to navigate current market conditions.

“The European plastics recycling sector is currently facing significant challenges, and this additional capital provides Metal-Plast with the necessary financial resilience to navigate this more difficult period,” says Vytautas Plunksnis, Partner at INVL Baltic Sea Growth Fund and board member at Metal-Plast.

“As the largest environmental management and recycling group in the Baltics, we can provide our businesses with a stable platform and targeted investments even in volatile market conditions. This helps maintain competitiveness, improve performance, and consistently expand recycling capacity over the long term,” says Jānis Aizbalts, Head of the Environmental Sector at Eco Baltia and Chairman of the Supervisory board at Metal-Plast.

Metal-Plast modernization to increase production capacity

This year, Metal-Plast has commissioned a modern wet grinding and separation line, which will enable the recycling of old window profiles on an unprecedented scale. With its help, it is expected to increase production capacity by 7,000 tons per year. The technology enables efficient removal of contaminants (including glass, metals and rubber), improves PVC material purity and increases the recovery of high-value PVC from the same amount of input material.

“Through the Recobud joint venture with Saint-Gobain and PreZero, we are enabling industrial-scale processing of post-consumer PVC windows, materially strengthening our capacity and cost structure. This is a structural step-change for the business, embedding ESG directly into our operating model while creating scalable, long-term value for both customers and investors.” said Tomasz Rycak, CEO of Metal-Plast.

About Eco Baltia

The Eco Baltia group is the largest environmental and waste management group in the Baltics, providing the full-cycle waste management solutions from waste collection and sorting to secondary raw material logistics, wholesale and raw material processing as well as PET, PE/PP and PVC plastics recycling.

The Eco Baltia group concluded 2024 with its highest ever consolidated turnover, reaching 262 million euros — a 20% increase compared to 2023.

The group’s companies in Latvia, Lithuania, Poland and Czech Republic have more than 2,600 employees. The largest of the companies the group owns are Eco Baltia vide, Latvijas Zaļais punkts, Nordic Plast, Oil Recovery, and ITERUM in Latvia, Metal-Plast in Poland, TESIL Fibres in Czech Republic, and Ecoservice in Lithuania. 

The shareholders of Eco Baltia are the INVL Baltic Sea Growth Fund (52.81%), the European Bank for the Reconstruction and Development (30.51%) and Māris Simanovičs (15.93% through SIA Enrial Holdings and 0.75% through Penvi Investment Ltd).

 About the INVL Baltic Sea Growth Fund

With a fund size of EUR 165 million, the INVL Baltic Sea Growth Fund is one of the leading private equity funds in the Baltics. Its anchor investor is the European Investment Fund (EIF), which is a part of the European Investment Bank and committed EUR 30 million with the support of the European Fund for Strategic Investments (a key element of the Investment Plan for Europe, or the Junker Plan) while also allocating resources from the Baltic Innovation Fund (a “fund of funds” initiative developed in cooperation with the governments of Lithuania, Latvia and Estonia,  to increase capital investment in high-growth potential small and medium-sized enterprises in the Baltics). The fund is managed by INVL Asset Management, the leading Baltic alternative asset manager, which is a part of the Invalda INVL Group with over 30 years of experience. The group’s companies manage or have under supervision more than EUR 2 billion in assets across various investment strategies, including private equity, forests and agricultural land, renewable energy, real estate, and private debt. Additionally, the group provides family office services in Lithuania, Latvia and Estonia, manages pension funds in Latvia, and invests in global third-party funds.

About “Metal-Plast”:

Metal-Plast is a Poland-based company that is market leader in recycling rigid PVC material—primarily window and door profiles—since 1993. The company cooperates with more than 700 window and door manufacturers and is capable of recycling approximately 30,000 tons of material per year, producing high-quality recycled PVC raw materials.

Notice of early redemption of AS “Eco Baltia” EUR 10,000,000 Unsecured Fixed Rate Notes (ISIN: LV0000860138)

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On 2 November 2023 AS “Eco Baltia” (the “Issuer”) issued EUR 10,000,000 unsecured 9 per cent notes due 2 November 2026 (ISIN: LV0000860138) (the “Notes”) under the General Terms and Conditions of the Notes (the “Terms and Conditions“) dated 20 October 2023.

The expressions defined in the Terms and Conditions shall, except where the context otherwise requires and save where otherwise defined herein, have the same meanings in this notice.

The Issuer hereby gives notice to the Noteholders that in accordance with Clause 13.3, paragraph (a), (Redemption at the option of the Issuer (call option)) of the Terms and Conditions the Issuer will exercise its option to fully redeem the outstanding Notes on 17 February 2026 (the “Redemption Date”) at a price equal to 101.00 (one hundred and one) per cent of Nominal Amount together with accrued interest to but excluding the Redemption Date. The list of Noteholders eligible to receive the payments in connection with the redemption of the Notes will be fixed at the end of 10^th of February  2026.

Taking into account the full redemption of the Notes, they will be cancelled and delisted from the Nasdaq Riga First North market as of the Redemption Date.

About Eco Baltia JSC (AS)

Eco Baltia is the largest environmental resource management and recycling group in the Baltics, ensuring a full waste management cycle – from waste collection and sorting to secondary raw material logistics, wholesale, and the recycling of secondary materials, including PET and PE/PP plastics, as well as PET fiber production.

The Eco Baltia group ended 2024 with its largest ever audited consolidated turnover of EUR 261.54 million, an increase of 20% compared to 2023.

The group’s companies in Latvia, Lithuania, Poland and the Czech Republic have more than 2,600 employees. The largest of the companies the group owns are Eco Baltia vide, Latvijas Zaļais punkts, Nordic Plast, Oil Recovery, and ITERUM in Latvia, Metal-Plast in Poland, TESIL Fibres in the Czech Republic, and Ecoservice in Lithuania.

The shareholders of Eco Baltia are the INVL Baltic Sea Growth Fund (52.81% through UAB BSGF Salvus), the European Bank for Reconstruction and Development (30.51%) and Māris Simanovičs (15.93% through SIA Enrial Holdings and 0.75% through Penvi Investment Ltd).