Invalda INVL, a leading asset management group, successfully completed the first EUR 10 million public offering of fixed-rate notes. The debt securities, which were 2.9 times oversubscribed, were acquired by 216 retail and institutional investors in the Baltics.
Orders for EUR 29.035 million were received from a total of 481 investors. The size, quality and diversity of the orders enabled Invalda INVL to set the annual interest rate on the notes at 7% – the lower limit of the specified range. The fixed rate of interest was determined by auction in the range of 7%-8%.
Darius Šulnis, CEO of Invalda INVL, comments: “We are grateful to investors for their trust, as demonstrated by the oversubscription of the notes, which were 2.9 times the issue volume, and the interest rate set at 7%. We have introduced a safe, transparent investment product to the market while tapping into another alternative source of capital for Invalda INVL“.
“It is encouraging to see that investors have appreciated the company’s work in the capital markets and the bond issue has been a great success not only among Lithuanian investors, but also among other Baltic investors, who are more and more frequently and actively participating in local placements. We congratulate Invalda INVL not only on the success of the bond issue, but also on the extremely favourable interest rate set by investors, which only confirms the trust and confidence of market participants in the Group’s proven track record”, says Eglė Džiugytė, Head of Markets at Šiaulių Bankas.
63.8% of all the notes on offer to retail investors and 36.2% to institutional investors. All investor orders of up to EUR 30,000 at a 7% annual interest rate were fully satisfied upon decision of the company. Investors whose subscription orders are for a larger amount receive at least EUR 30,000.
The EUR 10 million issue of notes has a 3-year maturity. Interest will be paid to investors semi-annually.
Invalda INVL conducted the first EUR 10 million public offering of fixed-rate notes to private and institutional investors in the Baltics from 3 June to 12 June. Retail and institutional investors in Lithuania, Latvia and Estonia were able to purchase up to 10,000 notes of the company with a nominal value of EUR 1,000. The minimum investment amount was EUR 1,000. The offering of Invalda INVL notes was organized by Šiaulių Bankas and the financial brokerage company INVL Financial Advisors, which operates under the INVL Family Office brand.
With this bond issue, Invalda INVL intends to finance its general corporate needs while also contributing to the development of the capital market.
Invalda INVL will apply to Nasdaq Vilnius for the listing and admission to trading of the notes on the Nasdaq Baltic Bond List. The admission of the notes to trading is expected to take place within 3 months.
The Bank of Lithuania on 28 May this year approved the base prospectus of Invalda INVL for a programme of issuance of notes in the amount of up to EUR 25 million. Under the programme, Invalda INVL may issue one or more series of non-convertible euro-denominated notes with a maturity of up to 5 years. The notes are to be secured by pledging as collateral a portion of the shares held by the company in Šiaulių Bankas, targeting to keep the value of the collateral at a loan-to-value ratio (the ratio of the notes issue size to the value of the pledged assets) not exceeding 50%.
About Invalda INVL
Invalda INVL is the leading Baltic asset management group with a track record spanning over 30 years. Growing and developing with an open approach, it creates well-being for people through its work. The group’s companies manage EUR 1 billion of assets across multiple asset classes including private equity, forests and agricultural land, renewable energy, real estate as well as private debt. The group’s scope of activities also includes family office services in Lithuania and Latvia, management of pension funds in Latvia, and investments in global third-party funds.
The shares of Invalda INVL have been traded on the Nasdaq Vilnius stock exchange since 1995. Further information is available here: https://www.invaldainvl.com/en/.
Important notice
The information contained herein is a marketing communication and should not be considered an offer or invitation to purchase any specific securities of the company. We remind you that investing in securities, including bonds, involves certain risks, including the potential loss of part or the entire investment. Therefore, before investing in the notes, each potential investor must assess their experience, financial capabilities, needs and investment objectives, and carefully familiarize with the prospectus and other documents related to the issuance of the notes, including the final terms of the first tranche and the issue specific summary.