Baltic Mill successfully completed dissemination of a 3 million euro bond issue
Baltic grain processing group Baltic Mill has successfully disseminated a public two-year EUR 3 million bond issue arranged by Šiaulių bankas AB. Demand for bonds outstripped supply, therefore the final annual interest rate applicable to the bonds was set at the lowest level - 4.5%.
With this bond issue the company refinanced a two-year bond issue issued in November 2017 which was redeemed on 4 November 2019.
“The demand for bonds has exceeded our expectations and indicated that the long-term relations with investors and their trust yielded results. This is the company's third public bond issue with the annual interest rate this time set at 4.5%. By issuing new bonds we have managed to maintain a diversified and efficient capital structure,” said Vygantas Reifonas, CFO of Baltic Mill.
“The Baltic Mill Group is a prime example of how the company can ensure a consistent access to an alternative to bank’s financing in a relatively short period of time. We observe the increasing interest of companies in issuing bonds and are planning to offer similar saving and investment solutions to the market in the future”, - said Tomas Varenbergas, Director of Markets and Treasury Department of Šiaulių Bankas that has disseminated the bonds.
Nearly a hundred individuals and legal investors have invested in the Baltic Mill bonds. The bonds come into effect on 4 November 2019 and their redemption date falls on 4 November 2021. Within next 6 months the company plans to include bonds into the alternative securities market „First North“ managed by Nasdaq Vilnius. Law firm Sorainen and partners have been chosen as a certified bond advisor.
Baltic Mill directly manages such Lithuanian companies as Malsena Plus, Amber Pasta, GT Innovation and Malūno Virtuvė as well as Rigas Dzirnavnieks in Latvia and Balti Veski in Estonia.
64.75% of Baltic Mill shares are owned by Amber Trust II S.C.A, a private equity fund with more than 10 active investments in the Baltics, 27.75% - by RGK Invest, a company manage by Raimondas Gintautas Kriūnas, 7.5% belong to the company MNGM Invest.