Invega is considering issuing bonds for the renovation of apartment buildings | Business

According to him, bond issues will be allowed in stages, and the European Investment Bank (EIB), European Bank for Reconstruction and Development (EBRD), Nordic Investment Bank, local and foreign pension funds could invest in them.

“The work has started, we are going to go securitization by the way Securitization works when you have some kind of active portfolio that you leverage, in layman’s terms, as a means of assurance to investors that their funds will return. We plan to do the securitization in stages, it is likely that the 700 million will not be available immediately. euros, and we will proceed in several pieces”, said D. Vilčinskas at the Audit Committee of the Seimas on Wednesday.

According to him, the first issue of bonds would amount to about 200-300 million. euros.

“We have not yet decided whether it will be a listed issue or whether we will simply invite investors to entrust funds to us and purchase our debt securities. It will not be a measure intended for a private person, for example, citizen Dainius Vilčinskas will not be able to purchase debt securities, it will be intended for institutional investors”, explained D. Vilčinskas.

According to him, bonds will replace the portfolio accumulated over several years, so it is expected that the project will be successful.

“I really hope that it will be possible to interest foreign investors, not only local ones. We will also look at pension funds, but we will also look at international organizations. The amount is 700 million. euros – the total volume is significant for Lithuania, so we will look at both of them”, said D. Vilčinskas.

“Perhaps the listing of those debt securities on the stock exchange can also be an effective way to promote the Lithuanian capital market,” he predicts.

In an interview with BNS last September, D. Vilčinskas said that a measure is being considered to promote the issuance of bonds, guaranteeing the redemption of their issues. According to him, “Invega” could possibly act as a quoter in bond trading, thus promoting liquidity and investment attractiveness, and companies would increasingly discover a way to raise funds not only through traditional bank loans, but also through bonds.

This year’s financing portfolio of Invegos is more than 2 billion. euros.