On Friday, 4 September 2026, the public offering of bonds by Hepsor AS (registration number 12099216, address Järvevena tee 7b, 10112, Tallinn, Estonia; Hepsor) (the ‘Offering’) ended. This was the second series of Hepsor’s €20 million bond programme, which was carried out on the basis of the base prospectus approved by the Financial Supervision Authority (FI) on 10 November 2025 and the supplement to the base prospectus approved on 21 August 2026.
As part of the Offering, Hepsor offered up to 3,000 EUR 9.50 Hepsor AS bond 26-2029 with a nominal value of 1,000 euros, maturing on 11 September 2029 and bearing a fixed interest rate of 9.50% per annum payable quarterly (the first interest payment will be made on 11 December 2026). In the event of oversubscription, Hepsor had the right to increase the volume of the Offering by 2,000 bonds. The Offering was directed at retail and institutional investors in Estonia, Latvia and Lithuania.
A total of 974 investors participated in the Offering, subscribing for bonds in the total amount of 7.1 million euros, of which 5.8 million euros, or 82%, in Estonia, 0.9 million euros, or 13%, in Latvia, and 0.3 million euros, or 5%, in Lithuania. Therefore, the base volume of the second series of the Offering in the amount of 3 million euros was oversubscribed 2.4 times. Hepsor exercised its right to increase the volume of the Offering by 2,000 bonds, as a result of which the total volume of the Offering increased to 5 million euros.
The management board of Hepsor decided on the allocation of the offered bonds at its discretion, based inter alia on the following principles:
- All subscription orders made by the same subscriber were aggregated;
- In the allocation, preference was given to investors who, as at the close of business on 21 August 2026, were shareholders and bondholders of Hepsor AS, as well as Hepsor employees. These investors were allocated 100% of the amount they subscribed for;
- All investors who subscribed for at least 100 bonds were allocated 55% of the quantity they subscribed for;
- All investors who subscribed during the first week of the Offering period, i.e. by 30 August 2026, were allocated 55% of the quantity they subscribed for;
- All other investors were allocated 40% of the quantity they subscribed for, but not fewer than 3 bonds.
Martti Krass, Member of the Management Board of Hepsor, said that the bond issue gives the company greater flexibility to finance ongoing development projects and make new investments in Estonia and Latvia. The capital raised will allow Hepsor to continue investing at a time when its construction activity has reached a record level and to respond more flexibly to new development opportunities.
“We are currently at the peak of our investment cycle, with many projects under construction simultaneously and pre-sales growing. We are very grateful for the trust investors have placed in us. The capital raised enables us to move forward successfully with our investments and pursue new acquisitions that support Hepsor’s continued growth,” Krass said.
Silver Kalmus, Head of Debt Securities at LHV Pank, said he was pleased that investors from all three Baltic countries, including institutional investors, participated in the second series of Hepsor’s EUR 20 million bond programme. “Hepsor is a recognised real estate developer in Estonia and Latvia, with an experienced team and a strong development portfolio. The results of the bond offering demonstrate investors’ confidence in the company’s track record and future plans,” Kalmus said.
The bonds will be transferred to investors’ securities accounts on or around 11 September 2026, and the first trading day for the bonds on the Baltic Bonds list of the Nasdaq Tallinn Stock Exchange will be on or around 14 September 2026.
Estonian resident individuals who have acquired or plan to acquire Hepsor AS bonds via an investment account may, in accordance with the Income Tax Act, defer the income tax liability arising from interest and receive the full amount of bond interest into their investment account. To do so, a corresponding application must be submitted to the issuer.
The application form is available on the Hepsor AS website: https://hepsor.ee/investorile/volakirjad/.
The application must be submitted only once and no later than two working days before the interest payment date; any application submitted after this deadline will only be taken into account on the following interest payment date. Interest payments on Hepsor bonds are made quarterly on 11 September, 11 December, 11 March and 11 June (except 11 September 2026).
Martti Krass
Member of the Management Board
Telephone: +372 5692 4919
Email: martti@hepsor.ee
Hepsor AS (www.hepsor.ee) is a residential and commercial property developer. The group operates in Estonia, Latvia and Canada. Over the course of fifteen years in business, we have created over 2,000 homes and nearly 44,000 m²of commercial space. Hepsor is the first developer in the Baltic states to have implemented a number of innovative engineering and technical solutions that make the buildings it constructs more energy-efficient and, as a result, more environmentally friendly. The company’s portfolio comprises a total of 29 development projects with a combined floor area of 195,000 m² . In addition, the group is involved in five projects in Canada, where its main activity is the preparation of detailed land-use plans, thereby securing greater development rights.
Important information
This notice is an advertisement for securities within the meaning of Regulation 2017/1129/EU of the European Parliament and of the Council of 14 June 2017. Each investor must make an investment decision solely on the basis of the information contained in the prospectus, the supplement to the prospectus, the summary, the terms and conditions of the bonds and the final terms. The approval of the prospectus by the Financial Supervision Authority does not constitute a recommendation of Hepsor’s bonds.
The information contained in this notice is not intended for publication, distribution or transmission, in whole or in part, directly or indirectly, in any country or under any circumstances where such publication, distribution or transmission would be unlawful, or to any persons subject to financial sanctions imposed by the competent authorities. Hepsor’s bonds are being offered to the public solely in Estonia, Latvia and Lithuania, and no sale or offer of the bonds is taking place in any jurisdiction where such an offer, invitation or sale would be unlawful without an exemption or qualification provided for by law, or to persons subject to financial sanctions imposed by the competent authorities. The bonds are being offered to the public solely on the basis of the prospectus, the supplement to the prospectus, the summary, the terms and conditions of the bonds and the final terms, and the Offering is directed solely at persons to whom the prospectus is addressed. This notice has not been approved by any supervisory authority and does not constitute a prospectus.
