ALTUM achieves its largest bond issuance to date

On May 23, 2025, ALTUM successfully issued 5-year bonds totaling EUR 70 million with a fixed annual interest rate of 3.576%. This marks the first issuance under ALTUM’s fourth bond issue programme, which has a total value of EUR 120 million. In comparison, a week earlier the Republic of Latvia issued a new 5-year Eurobond in the amount of EUR 1 billion with a yield of 2.971% which was 0.605% below the level achieved by ALTUM.

The bond issue garnered significant interest from Baltic institutional investors. Overall, 18 institutional investors participated in the bond offering, including Nordic Investment Bank. The allocation of the issued volume was as follows: 69% to asset management funds, 14% to Nordic Investment Bank, 13% to banks, and 4% to insurance companies. Geographically 43% of the bond was allocated to Latvian investors, 32% to – Lithuanian, 11% to – Estonian and 14% to investor based in Finland.

Chairman of the Management Board of ALTUM Reinis Bērziņš:

“This is ALTUM’s sixth and largest bond issuance to date, and it is a significant transaction not only for ALTUM but also for the Baltic capital markets – both in terms of the volume of EUR 70 million and the investor structure.

The achieved bond yield level of 3.576% is particularly noteworthy. This result demonstrates that investors are interested in investing in high-rated companies with a good reputation and a clear operational vision, even in the current challenging capital market conditions.

We are proud that Nordic Investment Bank was among the investors, which is a testament to ALTUM’s reliability and reputation at the international level. At the same time, this issuance provided an opportunity for local pension funds to make stable and predictable investments directly into the Latvian economy. Thus, ALTUM’s bond issuance not only diversifies ALTUM’s funding base but also contributes to the development of the Baltic capital market.

With the ALTUM bond issuance program approved by the Bank of Latvia in May this year, totaling EUR 120 million, we affirm that we continue to actively participate in the capital market in the long term with a clear vision and long-term contribution to the Latvian economy.”.

The issue was organised and managed by Luminor banka Legal assistance was provided by COBALT.

More about this topic: https://www.altum.lv/en/investors/bonds/programme-25/