AS CleanR Grupa bond offering significantly oversubscribed – demand more than double the target amount
AS CleanR Grupa (the Group), a group of leading companies in the environmental services sector in Latvia, has significantly exceeded the size of its bond issue during the public offering. Demand from institutional and private investors reached EUR 37.8 million, exceeding the target issue amount of EUR 15 million more than 2.5 times. Given the strong demand and in accordance with the principles set out in the base prospectus, all existing bondholders who participated in the bond exchange offer will receive the full amount in line with the exchange ratio.
The bond issue, held from 29 October to 11 November, marks an important milestone in CleanR Grupa’s development strategy and represents the first step in the Group’s EUR 50 million bond programme aimed to support its growth. The first tranche attracted strong interest from both existing bondholders and new investors. Approximately 70% – or 10,644,000 EUR – of the total approved issue amount of EUR 15 million was allocated to existing bondholders who participated in the bond exchange offer, while around 30% was allocated to new investors.
The demand from new investors was exceptionally high, exceeding the available offering by 6.2 times. The allocation of bonds among investors was carried out with the aim of creating a diversified and balanced investor structure while maintaining the principle of proportionality as much as possible – across both individual and institutional investors.
Based on the subscribed amount in the Baltics, the most active investors were from Latvia, accounting for more than two-thirds of total demand, followed by those from Lithuania (21%) and Estonia (12%).
“The fact that the majority of the issue was subscribed by existing bondholders is particularly significant – it demonstrates investors’ long-term confidence in CleanR Grupa and their trust in our strategic direction. The strong participation of existing investors shaped the allocation results. At the same time, we deeply appreciate the interest and engagement shown by new investors, which we view as an important signal from the market. We thank all investors for their active participation and trust,” emphasised Juris Gulbis, Chairman of the Management Board of AS CleanR Grupa.
“The results of CleanR Grupa’s bond issue clearly demonstrate that investors highly value the Group’s development direction, growth potential, and sustainable business model. Demand for the bonds was exceptionally strong – from both existing and new investors – and well balanced between institutional and private investors across the Baltic region. The total number of investors exceeded 600, including more than 15 institutional participants. This public issue marks an excellent first step within CleanR Grupa’s bond programme and serves as a strong confirmation of investors’ confidence,” says Kristiāna Janvare, Head of Investment Banking at AS Signet Bank.
The proceeds from the first tranche of the bond programme, totalling EUR 15 million, will be used to refinance existing bonds. Under the overall EUR 50 million bond programme, the Group intends to raise financing for refinancing existing liabilities and for growth projects, including potential mergers and acquisitions (M&A) in the Baltics.
The remaining amount of outstanding bonds, totalling EUR 4,356,000 (ISIN code LV0000802676), held by investors who did not participate in the bond exchange offer, will be repaid on the bond maturity date – 9 December 2025.
Admission of the bonds to trading on the Nasdaq Riga Baltic Regulated Market is planned within three months from the issue date.
Settlement of the bonds will take place on 14 November 2025. Bondholders will receive quarterly coupon (interest) payments based on a fixed annual interest rate of 6.5%, with the first coupon payment scheduled for 14 February 2026.
The bond issue is organised by Signet Bank, with legal advice provided by the law office Eversheds Sutherland Bitāns. The investors’ representative (trustee) is CSC Group (Sweden).
