Tallinn/Riga/Vilnius, Nasdaq Baltic Market, March 16, 2015 – Nasdaq (Nasdaq: NDAQ) announces a new service on the Nasdaq Baltic Market that will let growth companies more easily and quicker attract financing on the market – the First North Bond Market. Trading will begin on March 18, 2015 for the first issue admitted to this First North market by Nasdaq Vilnius – an issue by AB Bobutės Paskola of 2000 bonds with a nominal value of EUR 500 each, an annual interest rate of 7.5%, and a maturity of 2 years.
The First North market for bonds offers an alternative for growing companies that want to raise additional funds in the capital market but are not yet ready to join the regulated market. Companies on the First North market face lighter legal and regulatory requirements. Certified advisors assist them in joining this market.
“We’ve broadened our offering to companies by giving chance to include not only shares but also bonds to trading on the First North,” said Daiga Auziņa-Melalksne, Head of Exchange Services for the Baltic Market. “Admission of the company’s bonds to the First North brings greater visibility, brand recognition, and transparency, and so also increases investor confidence. The First North market is suitable for companies of different size from a variety of sectors.”
Trading on First North takes place in parallel and on the same trading system as on the regulated market, so companies on First North are seen by the same market participants and investors as those on the Main List of the regulated market. For many companies, First North can be a first step towards the regulated market.
“The issuance of bonds issued by Bobutės Paskola last year was the first public issue of securities both in our company and in the small consumer credits sector in Lithuania altogether. After the successful distribution, there were those who wanted but were late to acquire our debt securities,” - said Aiva Remeikienė, Director of AB Bobutės Paskola. “By entering the First North, we have created a possibility for some investors to sell bonds issued by our company and for other investors to purchase them without having to wait for the moment of the redemption. Moreover, participation in the securities market proves the company’s transparency and reliability, thus we have created additional value added not only for the company, but for the current and future investors as well.”
AB Bobutės Paskola will use the funds from its bond issue for expansion through the introduction of new services and products. The company’s certified advisor is UAB Verslo Konsultacijų Spektras.
About First North
First North is regulated as a multilateral trading facility (MTF), operated by the different exchanges at Nasdaq. It does not have the legal status as a regulated market in EU. Companies at First North are subject to the rules of First North and not the legal requirements for regulated market. The risk in such an investment may be higher than on the regulated market.
About Nasdaq
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Media Relations Contact:
Audrone Ranonyte
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audrone.ranonyte@nasdaq.com