Eco Baltia Attracted Interest from Investors

AS Eco Baltia, the largest environmental and waste management group in the Baltics, issued eight million Euro 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,” the company reported on February 13 this year. The proceeds raised from bond issue would 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”. Currently, several acquisition opportunities were evaluated. In addition, the company has several capital expenditure projects in its pipeline. The total volume of received orders was 28.49 million Euro. The size, quality and diversity of orders enabled Eco Baltia to set the annual coupon rate at eight percent, the lowest end of the indicated range. The tenor of the bonds is set at three years with the maturity date of 17 February, 2026 and an option for the issuer to call the bonds after two years, Eco Baltia informed. The nominal value of each bond is 1,000 Euro. Bonds would be issued at the nominal value, and the minimum subscription amount for one investor was set at ten bond units, or 10,000 Euro.

“Investors who placed the minimum order of 10,000 Euro were allocated in full, while bigger orders received partial allocations,” the company gave account. “Retail investors were very active in this transaction and were allocated 5.5 million Euro (69 percent) of the total issue with institutional investors making up the remaining 2.5 million Euro (31 percent). Most of the demand came from Latvian and Lithuanian investors with subscription amounts standing at 54 percent and 45 percent of total orders respectively.”

As reported, on February 8, 2023, the 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.”

(Published in GLOBAL RECYCLING Magazine 1/2023, Page 10, Logo: Eco Baltia)