CleanR Grupa bond issue significantly oversubscribed

12 Dec 2022

AS CleanR Grupa, a group that operates Latvia’s leading companies in such environmental services industry sectors as waste management, premises, road, and urban environment maintenance, has issued 15 million worth of bonds, thus successfully completing the company’s first bond issue.

With an annual coupon rate of 6.5% + 3M EURIBOR and three-year maturity, the bonds were offered to both private and institutional investors all over the Baltic region in the form of a private placement.

The demand for the CleanR Grupa bonds was significantly—one and a half times—oversubscribed, with an overwhelming interest from Latvian investors, thus attesting to the trust placed by Latvian society in the company, its current development strategy, and future aims. About a half of the CleanR Grupa bond holders are institutional investors.

“The strong investor interest from all three Baltic states, but especially from Latvia, speaks of the investor trust placed in the sustainability of CleanR Grupa’s business model. CleanR, the Group’s largest company, has proved itself as a reliable business partner to Latvia’s local municipalities and people, offering high-quality services, digitized customer service solutions, and investing in environmental services industry innovations. We highly value the investor trust put in us, and we will continue to consistently pursue our strategic business goals, focusing on sustainability- and climate neutrality-oriented solutions in every business line,” emphasizes Guntars Kokorevičs, Chairman of the Supervisory Board at CleanR Grupa.

The raised funds will be invested to carry out the Group’s investment plan, with an aim to expand and diversify the range of services provided by the Group and strengthen the company’s position in the areas of waste management and territory and urban environment maintenance.

The CleanR Grupa bond issue was organized by Signet Bank AS, that assists the leading Baltic companies to attract funds in the capital markets. Kristiāna Janvare, Head of Investment Division at Signet bank: “We are truly pleased to see that the Baltic capital market has been joined by such a qualitative issuer as CleanR Grupa—not only does it expand investment opportunities for investors in the Baltics, but it also helps build regional investment culture.  By participating in this kind of bond issue, the investor gets an opportunity to earn interest on their investment, which is linked to Euribor thus offsetting the hike in interest rates implemented by central banks and supports the implementation of the local company’s growth plan. The bond issue drew a lot of interest from both private and institutional investors, attracting a total of over 80 investors from all three Baltic states.”

The issued bonds will be listed on Nasdaq Riga First North market no later than within 12 months of the issue.

About AS CleanR Grupa

AS CleanR Grupa includes SIA CleanR, a household waste management company, SIA CleanR Verso, an industrial waste management company specializing in construction waste and recycled resources, SIA Vizii, a cleaning company, and SIA Vizii Urban, an urban environment management business. AS CleanR Grupa, its subsidiary and associate companies, primarily work in environmental service management. AS CleanR Grupa’s shareholder is Guntars Kokorevičs. The concern comprises a total of 20 companies, of which CleanR, Vides resursu centrs, and Vizii currently produce the biggest net turnover volumes.

 

About Signet Bank AS

Signet Bank was founded in 1991, and it was one of the first banks of the independent Latvia. The bank’s strategy is aimed at financing local companies and their subsidiaries and managing their capital. Since the start of 2021, Signet Bank has provided its clients with funds worth close to EUR 500 million in the form of bond and credit. The Signet Bank shareholders include nine Latvian and foreign private investors, of which the largest are Signet Acquisition III (25%), solely owned by an American investor Aleksandrs Solovejs, AS RIT Group (19.50%), a Latvian company belonging to the Rapoports family, and SIA Reglink (15.93%), established by Irīna Pīgozne, a banking industry professional.

 

 

For further information, contact:

Agita Baltbārde

Chief Officer for Corporate Affairs and Sustainability

[email protected] | +371 29 133 073

www.cleanrgrupa.lv