The Baltic States have all the conditions for businesses to develop with greater success by attracting financing through a bond issue. However, entrepreneurs are somewhat slow to adopt this alternative approach to corporate financing. It is important to comment on the accomplishments that companies have had with this financial instrument, notes Jānis Dubrovskis, head of the Investment Origination Department at Baltikums Bank.
It is also important that we improve the service itself. Today, Baltikums Bank is one of just a few banks in the Baltics that organises issues of corporate bonds. Over the course of six years, it has contributed a lot to developing the financial instrument in order to make business development more accessible and effective in a variety of industries.
Baltikums Bank has just arranged two new issues of bonds on the regulated market – in late October, AS “ELKO Grupa” registered a base prospectus for a public offer of bonds totalling 50 million euros, while SIA “ExpressCredit” booked an issue worth 5 million euros.
To facilitate a deeper understanding of this crucial financial instrument – and to promote issuers and their securities – Baltikums Bank experts have developed a specialised website: www.highyield.eu. It provides a summary of the latest offers on the Baltic stock market and presents useful, easy to understand information for novice investors.
The new website is available in English, Latvian and Russian, and targets small, medium and large investors in Latvia, Lithuania and Estonia that are looking for new investment opportunities.
“Businesspeople need to understand how important an issue of bonds is for facilitating a company’s development, so we are happy to advise them: we acquaint potential issuers with market standards and regulations and ultimately help them find the best solution for attracting funding”, the investment origination professional comments on his experience. “All issue prospectuses published on highyield.eu have been registered with the Financial and Capital Market Commission of the Republic of Latvia and included on the Nasdaq Riga Baltic Bonds List. This is a mark of investment quality, a certain standard that differentiates these vehicles from well-known platforms like Twino and Mintos”, Dubrovskis notes.
Baltikums Bank specialists have originated more than 30 closed and public issues by attracting a range of investors: banks, pension and investment funds, high net worth individuals, and casual investors. Jānis Dubrovskis was honoured with the 2014 Nasdaq Baltic Award for his year-long contributions to developing the corporate bond market in Latvia, expanding the range of investment opportunities available to private and institutional investors.
Issuers:
ELKO Grupa is a leading wholesaler of IT products, provider of solutions and services within the Eastern Europe region. Founded in 1993, ELKO represents over 90 IT producers, selling their goods to more than 7000 retailers, local computer builders and systems integrators.
ExpressCredit is a licensed nonbank lender established in 2009. ExpressCredit operates 95 branches under the Banknote brand in 38 major cities and residential areas throughout Latvia.
Ingrīda Šmite
Baltikums Bank AS
Head of the Public Relations and Communication Department
ingrida.smite@baltikums.eu
