"Of this amount, EUR 4 million will be contributed to the refinancing of existing liabilities. The bonds will bear a fixed interest rate of 10% and a maturity date of 30 August 2027," the company said in a release.
"The offer for the second tranche is made pursuant to the base prospectus for the AS Grenardi Group bond issue, dated 20 March 2024, which was approved by the Bank of Latvia. This tranche, amounting to EUR 17 million, is further detailed in the final terms and conditions approved by the company's Board. The total amount of the new bond issue will allow the issuer to raise up to EUR 5 million, with the financing being used to refinance the existing bonds listed by First North and to further develop [the] Group's growth and increase its product range," the company said.
The bonds will be available to both retail and professional investors in Latvia, Lithuania and Estonia with the subscription period starting on August 14 and ending August 27.
"The new bond issue aims not only to refinance existing liabilities, but also to strategically contribute to the growth of the AS Grenardi Group. These funds will enable us to diversify our product range and expand our store network. We believe that this initiative will not only strengthen the competitiveness of our company, but will also create added value for our customers and shareholders," said Ainārs Spriņģis, Chairman of the Board of AS Grenardi Group.
The arranger of the bonds issue is AS Signet Bank, while legal advice is provided by law firm Eversheds Sutherland Bitāns SIA.
During the public bond offering in Latvia, Estonia, and Lithuania investors wil be able to purchase up to 50 000 bonds with a nominal amount of EUR 100 per bond, annual fixed interest rate of 10% and a maturity of three years. The results of the bond issue will be announced on August 28 with settlement due August 30.
