Audited JSC Development Finance Institution Altum Consolidated and Separate Annual Report for the Year Ended 31 December 2021
31 March 2022
In accordance with the audited report JSC “Development Finance Institution Altum” Group (hereinafter referred to as - Altum Group) has made a profit of 13.8 million euros in 2021.
As at 31 December 2021, the Group's gross portfolio of support instruments amounted to 979,1 million euros, of which the gross portfolio of financial instruments totalled 895,8 million euros and consisted of 30,978 projects, including:
- guarantees portfolio of 415 million euros, the total number of contracts 23,345;
- loan portfolio of 316 million euros, the total number of contracts 6,476;
- investments in venture capital funds for the total amount of 86 million euros, the total number of projects financed by funds 235;
- Land Fund of 79 million euros, the total number of transactions 922.
In 2021, the Group’s financial instruments portfolio increased by 92.3 million euros (+11.4%) in terms of volume and by 4,400 projects (+16.6%). The largest increase in the Group's financial instrument portfolio in 2021 was driven by Altum's ordinary support programmes not related to overcoming Covid-19 consequences and amounting of 88,2 million euros.
In 2021, the guarantee portfolio increased by 55.4 million euros (+15.2%), while the number of projects in the guarantee portfolio increased by 4,080 projects (+21.2%). In 2021 there were issued new guarantees for 127 million euros.
In 2021, the loan portfolio increased by 13.2 million euros (+4.4%), while the number of transactions in the loan portfolio increased by 153 (+2.4%). In 2021, the volume of new loans issued amounted to 100.9 million euros
Reinis Bērziņš, Chairman of the Management Board of Altum:
“At the end of 2021, ALTUM's portfolio approached the important EUR 1 billion mark. We estimate that the real economic impact of these investments is at least 2.7 times higher, close to EUR 3 billion. Last year was another period of growth for ALTUM and we have closed it with a good financial result. While 2021 was shadowed by Covid-19 from the first to the last day, all through the year ALTUM funding was used overwhelmingly to invest in business growth and strengthening exports. So, entrepreneurs have adapted to the circumstances and business growth did not cease as supported by financial instruments. The largest growth in the portfolio was driven by ALTUM Capital Fund operations, agricultural land acquisition programme, SME growth loans and financing of energy efficiency projects. The guarantee portfolio has also grown significantly as ALTUM continues to cooperate with the private sector in promoting access to funding for both business development and affordable housing for private individuals, where 2021 witnessed a significant increase in demand. In 2022, we will not only continue all the ongoing state support programmes, but also launch a number of new ones. We are actively working on the development of programmes supported by the EU Recovery and Resilience Facility for climate change mitigation projects in the SME and multi-apartment building segments, which will provide greater access to sustainable finance in Latvia. We are planning a digital transformation programme to help companies improve productivity. A new financial instrument for the construction of affordable housing will be developed. At the beginning of the year, together with the IDAL and the Ministry of Economics, we launched a new EUR 100 million programme for medium-sized and Midcap enterprises to avail of loans with capital rebate for investment projects. We will proceed with using a variety of sources of funding, including the third bond issue programme launched last October. We are carefully analysing the economic and social implications of the war in Ukraine for Latvia, as well as its direct and indirect impact on ALTUM customers. Since the warfare in Ukraine has been ongoing during preparation of the Annual Report, the estimates used in determining provisions for 2022 can still change within this year. At the same time, we expect our growth to continue this year, with the focus on work with the existing products and launching new ones.”