FERN Group Reaches Milestone with Public Bond Offering
FERN Group, a forward-thinking provider of engineering solutions in Lithuania, has achieved an important milestone by completing a public bond offering that raised a total of EUR 8 million. Supported by the INVL Baltic Sea Growth Fund, this marks FERN's first step into the capital market, reflecting strong investor confidence in the company’s growth and operations.
Response from Investors
The bond offering saw considerable demand, with total orders reaching EUR 9.522 million, signaling significant interest from the investing community. A varied group of 406 investors participated, mostly from Lithuania, showing robust local support for FERN Group's initiatives. The bonds, illustrated by a 9% annual interest rate, are an appealing investment choice, offering quarterly interest payments and secured by the surety of the INVL Baltic Sea Growth Fund.
Strategic Allocation of Funds
Out of the funds generated, a notable EUR 5 million is earmarked for refinancing commitments with Lithuania’s State Investment Management Agency (VIVA). This strategic move aims to strengthen FERN Group's financial foundation, allowing them to concentrate on sustainable growth and their long-term goals. CEO Vilija Zapalskien? expressed her enthusiasm about this initiative, emphasizing the crucial role that investor trust plays in fulfilling the company’s mission.
Future Outlook
Looking ahead, FERN Group plans to apply for a listing of its bonds on the First North alternative securities market through Nasdaq Vilnius. This move is expected to improve market visibility and enhance liquidity for its securities.
Market Trends and Investor Confidence
FERN Group's successful bond placement highlights a growing trend among companies using capital markets to finance their operations. Egl? Džiugyt?, the Head of Markets at Šiauli? Bankas, noted a promising shift in how businesses are engaging with investors, opening new opportunities for growth-oriented enterprises.
About FERN Group
FERN Group stands out as a leader in engineering solutions. It encompasses well-established companies like FERN EPC, FERN Production, and Montuotojas. With 65 years of industry experience, the group has managed over 250 projects each year across various sectors, including industrial, energy, and agriculture, achieving consolidated revenues of approximately EUR 30 million in 2023.
Learn More About INVL Baltic Sea Growth Fund
The INVL Baltic Sea Growth Fund, totaling EUR 165 million, is a prominent private equity fund in the Baltic region. Backed by the European Investment Fund (EIF), this fund focuses on bolstering growth among small and medium-sized enterprises throughout the Baltics. Its diversified portfolio includes investments in sectors like food processing, healthcare, and environmental management, reflecting its commitment to promoting innovative companies in the region.
Contact Information
For more information related to the bond offering and FERN Group’s future plans, interested individuals can reach out to:
Vidas Venckus
Partner at INVL Baltic Sea Growth Fund
vidas.venckus@invl.com
Frequently Asked Questions
What does FERN Group's bond offering signify?
The bond offering allows FERN Group to diversify its financing options and demonstrates strong confidence from investors.
How much money did FERN Group raise through the bond offering?
FERN Group successfully raised a total of EUR 8 million from its public bond offering.
Who were the main investors in this bond offering?
A significant portion of the investors, about 74%, were from Lithuania, highlighting strong local support.
What is the interest rate for the bonds?
The bonds feature a 9% annual interest rate, creating an appealing investment opportunity.
What will the raised funds be used for?
FERN Group intends to use most of the funds to refinance commitments with the State Investment Management Agency in Lithuania.
