The largest environmental and waste management group in the Baltics, Eco Baltia, is entering the bond market: TGS Baltic advised the client on its inaugural 3-year bond issue

14.02.2023 The largest environmental and waste management group in the Baltics, Eco Baltia, is entering the bond market: TGS Baltic advised the client on its inaugural 3-year bond issue

Baltic team of Vidmantas Drizga, Dalia Augaitė, Inese Hazenfusa, and Mārtiņš Galzons advised Eco Baltia (managed by private capital fund INVL Baltic Sea Growth Fund) on entering the bond market. The client issued 8 million EUR of its inaugural 3-year bonds.

The maturity date of the bonds is set on 17 February 2026, with an option for the issuer to call the bonds after 2 years. The nominal value of a bond is EUR 1,000, the interest rate (coupon) of 8% is fixed for the whole period of the bonds.

The proceeds raised will be used to finance future development projects of Eco Baltia, with a focus on supporting the company’s expansion plans in Europe and promoting the circular economy.

This transaction is exceptional because:

  1. The issue of MEUR 8 was publicly offered to retail investors in the Lithuanian and Latvian markets (the usual choice is to publicly offer issues of up to MEUR 8 only in one jurisdiction).
  2. Retail investors were very active in this transaction and were allocated EUR 5.5 million (69%) of the total issue with institutional investors making up the remaining EUR 2.5 million (31%). Most of the retail demand came from Lithuanian and Latvian investors with subscription amounts standing at 54% and 42% of total retail orders respectively.

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Eco Baltia group is the largest environmental and waste management group in the Baltics, providing the full-cycle waste management solutions from waste collection and sorting to secondary raw material logistics, wholesale and raw material processing, as well as PET and PE/PP plastics recycling.

Read more:
“Eco Baltia” completes the placement of 8 million EUR of bonds attracting significant interest from investors