Published: 03/29/2024 14:14
Nerijus Aukščiūnas, head of treasury of SBA group. Photo of Judita Grigelytė (VŽ).
The furniture manufacturing business of the SBA group plans to raise 5 million in the first part of the public bond offering. collected EUR 2.7 million in the capital market. Eur.
This was SBA Furniture Group’s first foray into the capital market. It offered investors 8% annual interest for a period of 2 years. Bonds with a nominal value of EUR 1,000 were offered to investors, and the minimum investment amount was EUR 20,000. The bonds are unsecured. The issuer foresees the possibility of redeeming them ahead of time.
The company has planned a total of 8 mln. Euro bond issue, therefore intending to return to the capital market in the summer due to raising the remaining funds.
When starting to distribute the first part of the issue, the company communicated that “it is planned to raise 5 million Eur. The rest, 3 million Bonds worth EUR are planned to be issued at the end of June.
After the distribution results of the first part, the issuer announces that, “as planned, the remaining part, more than 5 million EUR worth of bonds, it is intended to be offered to investors by the middle of the year”.
“We are consistently implementing our strategic direction – to diversify the financing instruments used not only in real estate, but also in the traditional industry – the manufacturing industry. Our predictions have come true – the market has expressed interest in opportunities to invest in a stable business and receive a stable return commensurate with investment risk. The major part – 80% of the first part of the issue was purchased by corporate and institutional investors,” Nerijus Aukščiūnas, head of treasury of SBA group, is quoted in the press release.
The issuer announces that part of the loans will be repaid ahead of time with the funds borrowed from the bonds, and development will be financed.
The company’s bond issue is distributed by investment banking firm Redgate Capital.
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