October 24, 2017
Nasdaq Welcomes ALTUM to Baltic Market
Riga/Tallinn/Vilnius, Nasdaq Baltic Market, October 24, 2017 – Nasdaq (Nasdaq: NDAQ) announced that the bonds of the Latvian development finance institution ALTUM (short name: ALTM) were listed on the Baltic Bond List by Nasdaq Riga as of October 24, 2017.
ALTUM is a state-owned development finance institution, which offers state aid for various target groups with the help of financial tools such as loans, credit guarantees, investing in venture capital funds and other. ALTUM develops and implements state aid programs to compensate for the market's shortcomings that can't be solved by private financial institutions. ALTUM shareholders are ministries of Economics, Finance, and Agriculture. Moody’s investor service has assigned ALTUM investment grade rating Baa1, thus acknowledging its stable financial position. To learn more, visit: altum.lv/en/.
The size of ALTUM bond issue is EUR 20 million. The annual interest rate is 1.3%. The interest on the bonds will be paid annually on October 17 each year. Maturity date of the bond issue is October 17, 2024. AB SEB bankas was the arranger of the bond issue.
“We are excited to welcome ALTUM, a state-owned development finance institution, to Nasdaq Riga. ALTUM will make a valuable addition to our strong Baltic Bond List,” noted Daiga Auziņa-Melalksne, Head of Exchange Services at Nasdaq Baltic and CEO of Nasdaq Riga, AS. “It is a pleasure to see that the bond market serves as a growth accelerator for ALTUM. We look forward to supporting company with the increased visibility across Baltic region.”
“ALTUM is the first national development finance institution in the Central and Eastern Europe to issue Green bonds. The transaction attracted a great deal of interest from investors in Latvia, Lithuania and Estonia, and was 6.5 times oversubscribed. This confirms that offer comes at the right time and investors are interested in funding of green projects. Green minded financing instruments will be used to support sustainability projects in Latvia, while providing us with an opportunity to diversify ALTUM’s funding base and support development of the Baltic Bond market. Today we are happy and proud to join Nasdaq Baltic market and we are ready to establish a long standing relationships with investor community,” said Reinis Bērziņš, CEO of ALTUM.
“In a rather short period of time ALTUM has proven to be a solid organization with a clear vision for future. The bond issue for diversification of ALTUM's funding base was one of the cornerstones for the merger of ALTUM, the Latvian Guarantee Agency and the Rural Development Fund into single organisation, and now we see that ALTUM's team has done it with great success. At the same time, the ALTUM's issue of bonds and their listing on the stock exchange both serves as an important milestone in the development of capital raising market in Latvia and also sends a positive signal to foreign capital markets,” said Kaspars Āboliņš, the Treasurer, Treasury of the Republic of Latvia.
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Nasdaq Baltic Market represents the common offering of the Nasdaq Tallinn, Nasdaq Riga and Nasdaq Vilnius securities exchanges as well as Nasdaq CSD. To learn more, visit: nasdaqbaltic.com.
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