FERN Group Seals Success with EUR 8 Million Bond Offering
FERN Group Achieves Milestone in Public Bond Offering
FERN Group, an innovative engineering solutions provider in Lithuania, has recently reached a remarkable milestone by successfully completing a public bond offering that raised EUR 8 million. Backed by the INVL Baltic Sea Growth Fund, this marks the firm’s debut in the capital market, showcasing the confidence investors have in its growth potential and operations.
The Investor Response
With strong demand, FERN Group received orders totaling EUR 9.522 million, underscoring a significant interest from the investor community. A diverse group of 406 investors participated, predominantly from Lithuania, highlighting the local support for the company’s initiatives. The bonds, which carry a 9% annual interest rate, demonstrate an attractive investment option as they are tied to quarterly interest payments and secured by the surety of the INVL Baltic Sea Growth Fund.
Strategic Utilization of Funds
Of the funds raised, a substantial EUR 5 million will be allocated towards refinancing commitments to Lithuania’s State Investment Management Agency (VIVA). This strategic maneuver is intended to bolster the financial foundation of FERN Group, enabling it to focus on sustainable growth and the pursuit of its long-term objectives. Vilija Zapalskien?, CEO of FERN Group, expressed enthusiasm regarding the venture, remarking on the importance of investor trust in the company’s mission.
Looking Ahead: Future Plans
In a forward-looking statement, FERN Group has indicated plans to apply for the listing of its bonds on the First North alternative securities market via Nasdaq Vilnius. This step is expected to enhance market visibility and liquidity for its securities.
Market Trends and Confidence
The successful bond placement by FERN Group signifies a growing trend among companies to leverage capital markets as part of their financing strategies. Egl? Džiugyt?, Head of Markets at Šiauli? Bankas, emphasized the encouraging shift in how companies are engaging with investors, and the promising opportunities this creates for growth-fueled enterprises.
About FERN Group
FERN Group is recognized as a leader in providing engineering solutions and includes established companies such as FERN EPC, FERN Production, and Montuotojas. With 65 years of industry experience, FERN Group has consistently managed over 250 projects annually across various sectors, including industrial, energy, and agriculture, achieving consolidated revenues of approximately EUR 30 million in 2023.
More on INVL Baltic Sea Growth Fund
The INVL Baltic Sea Growth Fund, with a size of EUR 165 million, stands as a preeminent private equity fund in the Baltic region. Supported by the European Investment Fund (EIF), this fund is dedicated to fostering growth among small and medium-sized enterprises across the Baltics. The fund has invested in a diversified portfolio that includes sectors such as food processing, healthcare, and environmental management, showcasing its commitment to promoting innovative companies in the region.
Contact Information
For further details regarding the bond offering and FERN Group’s future endeavors, interested parties can contact:
Vidas Venckus
INVL Baltic Sea Growth Fund Partner
vidas.venckus@invl.com
Frequently Asked Questions
What is the significance of FERN Group's bond offering?
FERN Group's bond offering allows the company to diversify its financing sources and demonstrates solid investor confidence.
How much did FERN Group raise through this bond offering?
FERN Group successfully raised EUR 8 million from its public bond offering.
Who were the primary investors in the bond offering?
A majority of the investors, about 74%, were from Lithuania, showing strong local support.
What is the annual interest rate for the bonds?
The bonds carry a 9% annual interest rate, making them an attractive investment option.
What will the funds from the bond offering be used for?
FERN Group plans to use most of the funds to refinance commitments to the State Investment Management Agency in Lithuania.
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