Arrangement of bond issues
Sometimes ambitious companies that need financing can opt for bond issues instead of loans. Corporate bonds are the company’s debt obligations subject to specific conditions. Rietumu Banka provides full support for bond issues – advising on the issue structure and conditions, coordinating cooperation with involved partners and addressing the investors to purchase the bonds.
Rietumu Banka is an experienced partner in issuing bonds:
- There are more than 15 highly professional specialists in the bank having wide knowledge of investments and local and international securities
- The bank is a member of Nasdaq CSD depository, which ensures fast execution of payments under bond initial offering and trading on secondary market
- Besides being a member of Nasdaq Riga stock exchange, the bank also is its founder and shareholder (7.02%)
- The bank has wide partner network in the Baltics and in other countries
- The bank provides advice to potential issuers within the Securities Sandbox established by the Latvijas Banka – the support mechanism for potential issuers
Bond issue process
Arrangement of issuing private or public bonds usually takes 3–6 months. The process includes several stages: initial study of the company’s needs, preparation of documents and presentation, sale of issued securities (bonds), marketing those to potential investors, and admission to the stock exchange, choosing the most appropriate listing.
Typical bond conditions
- Volume: from EUR 5 million
- Term: 2–5 years
- Currency: EUR
- Interest rate: according to mutual agreement
- Collateral: according to mutual agreement
- Other conditions: negotiable
Our experience
The bank’s team has large experience in raising and structuring the funding for medium and large companies. The bank’s clients often operate in various countries, and the areas of their activities include energy, real estate, finance, manufacturing, and others.
Examples of our experience:
- International construction equipment lease group (Latvia) - structuring and distribution of several bond issues in 2020–2025. Total volume exceeds EUR 50 million.
- International car and consumer lending group (Luxembourg) - distribution (IPO) of bonds and shares in 2020–2025. Total amount of raised financing exceeds EUR 30 million.
- Multisectoral holding (Lithuania) - structuring and distribution of bond issue for wind park development in Liepaja in 2024–2025. Total volume –EUR 20 million.
- A-class office building in Riga - structuring and distribution of several bond issues in 2022–2024. Total amount of raised financing exceeds EUR 50 million.
- Commercial bank (Latvia) - structuring and distribution of subordinated bond issue in 2022. Total volume – EUR 5 million.
- Real estate fund (Estonia) - distribution of the bond issue for one of the group’s SPV (special-purpose vehicle). Total volume – EUR 4 million.
