Series 2, Tranche 2 | 1.3% 7 Years Bond
Series 2 | 1.3% 7 YEARS BOND
ALTUM issues Notes in the amount of EUR 15 million with a yield of maturity of 0.95%
Development Finance Institution ALTUM, rated Baa1 by Moody's Investors Service, has issued Notes in the amount EUR 15 million with a yield of maturity of 0.95%. The transaction attracted a great deal of interest from investors in Latvia, Lithuania and Estonia and the Notes were oversubscribed by 13 times.
On 29 May, ALTUM issued Notes in the total value of EUR 15 million – the first issue of Notes in a EUR 70 million bond issue programme - with a yield of maturity of 0.95%. The Notes were issued in addition to a EUR 10 million Notes issue on 7 March 2018 with a maturity date of 7 March 2025 and a fixed annual interest rate (coupon) of 1.3%, which are listed on the Nasdaq Riga stock exchange. The transaction attracted a great deal of interest from investors in Latvia, Lithuania and Estonia and the Notes were oversubscribed by 13 times. The Notes were allocated to 20 investors in the Baltics: 5 banks (18%) and 15 asset managers and insurance companies (82%).
Proceeds from the Notes will be used for ALTUM funding purposes of sustainable business projects that are vital for the national economy within agriculture.
Reinis Bērziņš, Chairman of ALTUM Board:
“We are pleased with investors' major interest in the Notes issue, which attests to the correctness of the fundraising strategy chosen by ALTUM and at the same time allows us to issue Notes on good financial terms. We will use proceeds from this Notes issue to expand operations of the ALTUM-run Land Fund to further strengthen the fund’s rapid growth in recent years. In less than four years, the Land Fund portfolio has reached its first 10,000 hectares, with the volume of transactions increasing every year. With the new bonds issue programme of EUR 70 million the total funding attracted by ALTUM on capital markets will reach EUR 100 million. In general, the fund raising in capital markets ensures diversified funding sources, helps to be sustainable and self-sufficient in attraction of the funding at the same time promoting the development of the Baltic capital market.”AB SEB Bankas acted as the Arranger of the transaction.
As of 5 June 2019 the Notes are consolidated and form a single series with EUR 10,000,000 Notes issued on 7 March 2018.