FERN Group Launches EUR 8 Million Public Bond Offering
FERN Group, a leading engineering solutions provider based in Lithuania and part of the INVL Baltic Sea Growth Fund portfolio, is initiating a public bond offering valued at EUR 8 million. This offering aims to draw interest from both retail and institutional investors throughout the Baltic region, with the goal of strengthening the group's financial position and supporting its growth initiatives.
Details of the Bond Issue
The bond issue recently announced by FERN Group features a maturity period of 2 years. Investors can choose an annual coupon rate between 8.5% and 9.5%, with interest payments made quarterly. The bonds will be backed by a surety from INVL Baltic Sea Growth Fund, amounting to EUR 8 million, which provides an added layer of security for investors.
Use of Proceeds
According to Vilija Zapalskien?, the CEO of FERN Group, the company plans to allocate EUR 5 million from the funds raised to refinance existing debts and cover other corporate requirements, thereby strengthening the group's financial strategy and ensuring operational sustainability.
Partnership and Growth Opportunities
Vidas Venckus, a partner at INVL Baltic Sea Growth Fund and a member of FERN Group’s supervisory council, highlighted that this bond offering opens up significant avenues for the group to sustain its growth and reach its long-term strategic objectives within a competitive market environment.
Enhancing Financial Stability
FERN Group has a strong track record in financial management. Previously, the State Investment Management Agency of Lithuania (VIVA) financed Montuotojas, one of its subsidiaries, which has successfully repaid EUR 3.5 million of an initial EUR 8.5 million financing arrangement. This bond issuance aims to fully settle any outstanding debts to the agency, further demonstrating the company’s commitment to maintaining financial health.
Bond Offering Details
The nominal value for each bond offered by FERN Group is EUR 1,000. The public offering is open to both retail and institutional investors in the Baltic countries and will conclude on 11 September. Šiauli? Bankas is managing the distribution of the bonds to ensure effective outreach to potential investors.
Investor Engagement
An online presentation and Q&A session for prospective investors is set for 3 September. This session is designed to provide comprehensive insights into the bond offering and to address any questions that interested parties may have.
Market Inclusion Plans
FERN Group intends to apply for the inclusion of its bonds in Nasdaq Vilnius, targeting the First North alternative securities market. This step is expected to increase visibility and accessibility for investors, while also supporting the group’s growth strategy.
Advisory and Management
Cobalt acts as the legal advisor for the FERN Group bonds, ensuring compliance with all regulatory and legal requirements throughout the offering process. The audit firm Audifina has been appointed as the trustee for the bondholders, providing oversight and instilling confidence in the management of investor interests.
About FERN Group
FERN Group is recognized as a top engineering solutions provider in Lithuania, comprising companies such as FERN EPC, FERN Production, and Montuotojas. With over 65 years of industry experience, the group handles more than 250 projects annually across various sectors, including industrial, energy, logistics, and agriculture. In 2023, FERN Group reported consolidated revenues nearing EUR 30 million, underscoring its strong market position.
About INVL Baltic Sea Growth Fund
INVL Baltic Sea Growth Fund, managing EUR 165 million, is the leading private equity fund in the Baltic region. It operates with the support of key investment groups, including a significant commitment from the European Investment Fund (EIF). The fund focuses on promoting capital investment in high-growth potential SMEs in the Baltics, contributing to regional economic development and growth.
Fund Management Expertise
Managed by INVL Asset Management, a prominent alternative asset manager in the Baltics with over 30 years of experience, the fund has developed a diversified portfolio that includes investments in food processing, healthcare, and environmental management sectors. With assets exceeding EUR 1 billion, INVL Asset Management continuously seeks to optimize investment opportunities throughout the Baltic and Central European regions.
Contact Information
For further details regarding this bond offering or any other inquiries, please reach out to:
Vidas Venckus
Partner at INVL Baltic Sea Growth Fund
Email: vidas.venckus@invl.com
Frequently Asked Questions
What is the FERN Group bond offering about?
The FERN Group is launching a public bond offering for EUR 8 million to attract investors and support its growth objectives.
How long is the maturity period for the bonds?
The bonds issued by FERN Group have a maturity period of 2 years.
What will the funds raised be used for?
Funds raised will primarily refinance existing liabilities and cover other corporate needs.
When does the bond offering conclude?
The bond offering will conclude on 11 September and is available to retail and institutional investors.
Who manages the INVL Baltic Sea Growth Fund?
INVL Baltic Sea Growth Fund is managed by INVL Asset Management, which specializes in alternative asset management across various sectors in the Baltic region.
