Lithuanian retailer Maxima Grupė has successfully placed a €300 million issue of 5-year bonds, according to a press release.
The bonds were purchased by more than 60 investors from 14 countries.
Of these, one third were from the Baltic and Scandinavian region, while the rest hailed from other European countries. Demand for the securities exceeded supply.
Between 30 August and 5 September, the retail group's senior management held meetings with potential investors from Continental Europe, the Nordics, the Baltics and the UK.
'A Historical Step'
It marks the biggest issue of bonds by a private company in the Baltics.
Maxima Grupė CEO Dalius Misiūnas said that the potential investors showed a "lot of interest", which prompted the company "to proceed with the debut offering immediately."
"The successful completion of the offering is a historical step for Maxima Grupė, which has thus decisively entered the international capital market.
"It is also a proof that the company has reached the maturity that allowed us to gain international investors’ confidence and use the same financial instruments as large European retailers,” Misiūnas added.
The annual fixed coupon of the bonds will be 3.25%, while the company’s bonds were placed at 3.5% yield.
Settlement will take place on 13 September 2018.
Following the sale, the group has planned to list the bonds on the Euronext Dublin and Nasdaq Vilnius securities exchanges.
'International Recognition'
The move also makes the retail group the first private company in Lithuania to enter the international capital market this year.
BNP Paribas, Deutsche Bank, and SEB Bankas were selected by the retailer as the arrangers and dealers for its bond programme and offering.
"This step by Maxima Grupė increases the company’s transparency, demonstrates international recognition, and also confirms that investors look favourably on the group’s financial outlook and expansion plans.
"We think there are more companies in Lithuania that could take advantage of this example and diversify their sources of financing,” said Vilius Juzikis, a member of the board and the head of corporate banking at SEB Bankas.
In July of this year, the group received a BB+ credit rating with a stable perspective from Standard & Poor’s (S&P).
Maxima Grupė operates retail chains in the Baltics, Poland and Bulgaria.
© 2018 European Supermarket Magazine – your source for the latest retail news. Article by Dayeeta Das. Click subscribe to sign up to ESM: European Supermarket Magazine.
