Latvian financial concern AS DelfinGroup On July 9, 2021, in the form of a closed offer, it has successfully issued bonds worth EUR 5 million with an annual coupon interest rate of 9.75%. One bond has a nominal value of EUR 1,000 and a minimum subscription amount of EUR 100,000. Despite the fact that the annual coupon interest rate was historically lower, the demand for bonds exceeded the issue volume by 1.85 times, according to the company’s information published to the stock exchange. Nasdaq Riga.
The proceeds from the bond issue will be used to refinance existing liabilities, which will ensure a reduction in the company’s total funding costs.
“We are pleased with the successful bond issue. High demand from professional investors for DelfinGroup bonds show confidence in and support for our business strategy as well as the company’s corporate governance. This bond issue marks a new stage in the company’s history, as our bond coupon rate has dropped significantly to single-digit territory. We have also set ourselves a new goal – to be fully ready to start in the second half of this year Nasdaq Riga on the stock exchange with the initial public offering of shares or IPO. Our goals are focused on stability and long – term strategy implementation, “comments AS DelfinGroup Chairman of the Board Didzis Ādmīdiņš.
“With this closed bond issue, we have significantly improved our bond financing structure, which includes the concept of a negative pledge. This concept ensures that the bond issue will not be secured by the company’s assets, but by a commitment not to pledge or pledge these assets. “The collateral will be limited to borrowings from a bank or mutual lending platform. This collateral concept is widely used in bond issues, is understandable and provides easy refinancing,” he said. DelfinGroup Kristaps Bergmanis, Member of the Board and Chief Financial Officer.
Despite the lowest coupon rate in the company’s history, investors welcomed the offer, resulting in a total demand for bonds in excess of € 9.26 million. Private investors accounted for 65% of the total issue, while the remaining 35% were institutional investors.
The organizer of the bond issue was Signet Bank AS.
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