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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.

On February 7, 2023 the largest environmental and waste management group in the Baltics AS Eco Baltia organized a webinar about company’s inaugural 3-year bond issue public offering. During webinar the Chairman of the Management Board Māris Simanovičs and Member of the Management Board and CFO Santa Spūle introduced with Eco Baltia’s business segments, growth story and business results, while Gints Belēvičs, the Head of Markets Customers in Luminor Bank, the Sole Lead Manager of the transaction, provided details and terms of the currently ongoing public bond offering.

Eco Baltia would like to thank all the attendees. The recording of the webinar is available online: https://bit.ly/40MKXxo and the presentation, demonstrated during the webinar, is available HERE.

“Eco Baltia” in its inaugural bond issue seeks to issue up to 8 million EUR of unsecured fixed-rate bonds. The maturity of the bonds is set at 3 years. Interest rate (coupon) of the bonds will be fixed for the whole period and will be set within the range of 8% to 9% upon expiration of the subscription period. Subscription period will end on the 10^th of February. The bonds may be subscribed by qualified investors and retail investors. Nominal value of each bond is 1,000 EUR. Minimum subscription amount for one investor is set at 10 bond units, or 10,000 EUR. Application will be made for listing the bonds at Nasdaq Riga alternative market First North within 6 months upon issue.

All information about the bond issue and subscription process is provided in the Offering Document and Final Terms which can be found on Eco Baltia’s website www.ecobaltia.lv section “Investors”.

The financing raised in the bond issue is intended to be used for future development projects of Eco Baltia aimed to support further expansion at the European level and promote circular economy. 

The information contained in this announcement does not constitute investment advice nor a proposal. The information in this announcement contains generic forward-looking statements and the intention of Eco Baltia to undertake a public offering. Any investment decision shall be made subject to the offering document, which is available at the Company’s website www.ecobaltia.lv section “Investors”.