On Thursday, November 14, the EIKA Group redeems a EUR 5 million issue that was issued two years ago, in November 2022. The bonds were issued with a yield of 7 percent, and interest was paid semi-annually. 90 individuals and legal entities invested in this issue.
Domas Dargis, CEO of EIKA Group, said that the decision to redeem the bonds was made taking into account the plans of the companies managed by the group.
“We see further growth and investment opportunities in Lithuania and other European markets, and having also assessed the stable, strong financial position of the “EIKA” group of companies and various opportunities to attract financing, we plan to undertake new projects. We do not rule out the possibility of returning to the bond market under attractive conditions,” says D. Dargis.
According to him, both retail investors, who usually invest up to 50 thousand euros, and larger investors with free funds (high net-worth individuals) participated in the issue, and private banking clients also showed great interest: “We are very grateful to them for their trust and are already making plans for the future so that we can continue to grow together.”
Another bond issue, also worth 5 million euros, was bought out from investors by the EIKA group in September.
The bond redemption indicates the group’s secure financial structure and the ability to use alternative sources of financing, especially in today’s context, when the majority of bond issues are refinanced. It is estimated that the group’s financial leverage or loan-to-value ratio at the group level is below 45%, and remains conservative.
Currently, EIKA group companies have also issued bonds at the project company level for the projects “Užupio personos” (EUR 1 million) and “Jasinskio2” (EUR 3 million), which were issued through the bond platform “BeMyBond”. The group company has also issued an 8 million euro bond issue for the development of a military town in Šiauliai, which was bought by the pension funds of the Baltic States, the issue is listed on the main bond list of the Nasdaq Baltic exchange.