One of the largest industrial waste management companies in Lithuania, “Žalvaris," has successfully placed a public bond offering, borrowing 5 million euros for two years at an annual interest rate of 9.5%. The company organized the bond offer across the three Baltic States and successfully distributed the full planned amount during the two-week placement process. The demand for the bonds exceeded the offer by three times, totaling 15 million euros.
"We have been closely following capital market trends for some time, and we can see how rapidly investors' interest in corporate debt securities is growing. This is reflected in the demand during the 'Žalvaris' bond placement, which was three times higher than the supply. We are pleased with this success, as the bond issuance will provide the company with the opportunity to choose from various funding options, not only from different banks, but also from different financing methods, which will help the company optimize its debt in the future," said Vitoldas Sapožnikovas, Director of "Žalvaris."
During the bond allocation, all investors received at least one bond. Investors who applied for more than one bond were allocated an additional 25% of the amount exceeding the value of one bond. A total of 647 investors submitted applications to purchase these bonds, including both institutional and retail investors.
The capital raised during the bond placement is intended to be used for investments in the installation of fire protection systems, the purchase of waste collection and recycling equipment, and other operational needs.
The bonds represent the first such financing method not only for "Žalvaris" but also in the history of the entire "Green Group" company group. "Žalvaris" plans to list the bonds on the Nasdaq stock exchange.
The bond placement was carried out by AB "Šiaulių Bankas," with legal consulting provided by "TGS Baltic.