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ELKO Group has issued bonds in the amount of 20 million euros

The largest company group in Latvia - AS ELKO Grupa, a wholesaler of IT products and household appliances, has issued bonds in the total amount of 20 million euros.
ELKO is an experienced and well-known bond issuer. Attracting long-term financing with a fixed interest rate allows ELKO to further diversify its financing structure. This is the largest issue in the history of ELKO. On February 12, bonds were issued in the total amount of 20 million euros with a maturity of 5 years and a coupon rate of 6%. The bonds will be listed on the Nasdaq Riga First North list of the alternative securities market.

The bonds were purchased by more than 80 investors from the Baltic States, Germany and Malta - including banks, pension plans, investment funds, insurance companies, as well as private investors. The Altum Capital Fund, for which this was the first investment, also participated in the transaction as an investor.

CEO of ELKO Group Svens Dinsdorfs: "The bond issue is an opportunity for our company to continue growing and ensure competitiveness even during the pandemic. Demand for IT and home appliances has grown rapidly, while at the same time there is a high level of uncertainty associated with supply chain disruptions and rising logistics costs. In order to manage high and rapid growth in the challenging market conditions, working capital adequacy is crucial.”

The ELKO bond issue was jointly managed by the financial and investment company Callidus Capital (financial consultant) and Signet Bank (issue organizer).

Chairman of the Board of Signet Bank Roberts Idelsons: “Return of one of the flagships in economics of Latvia - ELKO - to the Baltic capital market is a significant event in the industry. Demand for bonds exceeded supply 2.5 times, and local investors bought 96% of the entire issue. The results of this bond issue serve as a clear confirmation that attracting financing through a bond issue in the local capital market is an effective tool through which the companies of Latvia can attract financing for their development. We very much hope that this issue will encourage other local companies to consider issuing bonds as an alternative source of financing."

Partner in the Callidus Capital Roberts Stuģis: "The issue was organized in a relatively short time, and the demand for ELKO bonds significantly exceeded the amount offered. It is a pleasure to see such activity of market members, especially from private capital banks and private investors. In order to promote economic development and growth, money must be on the move, and invested meaningfully!”

Chairman of the Board of ALTUM Reinis Bērziņš: "We are pleased to participate in the ELKO bond issue as one of the largest investors, supporting the growth of the industry champion at a time when the virus pandemic has significantly changed the playing field for exporting companies. This is exactly the goal of the ALTUM Capital Fund - to meaningfully support large companies in Latvia that use the Covid-19 crisis as a time of opportunity, strengthening both existing positions and entering new markets, while also diversifying funding sources. Our investment, which is comprised of resources of the Latvian public and private pension funds, facilitates the interest of other private sector investors in purchasing bonds. At the same time, this investment will also bring returns to the state and promote the development of the Baltic capital market.”
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