FERN Group, a leading engineering solutions group in Lithuania and a portfolio company of INVL Baltic Sea Growth Fund, the leading private equity fund in the Baltics, is launching an issue of EUR 8 million bonds on August 29, 2024. The bonds will be publicly offered to private and institutional investors in the Baltics.
The new FERN Group bond has a term of 2 years. In an auction, investors can choose an annual coupon between 8.5% and 9.5%, with the coupon paid quarterly. The bond is secured by a guarantee from the INVL Baltic Sea Growth Fund in the amount of EUR 8 million.
“Our goal is to raise funds from investors on the capital markets. EUR 5 million is earmarked for refinancing existing liabilities and other corporate purposes,” says Vilija Zapalskienė, CEO of FERN Group and its subsidiaries.
Vidas Venckus, Partner of the INVL Baltic Sea Growth Fund and member of the Supervisory Board of FERN Group, adds: “This bond issue will give the Group more opportunities to grow steadily and achieve its strategic goals.”
The Lithuanian State Investment Management Agency (VIVA) has previously financed the operations of the group’s Montuotojas company, and the company has already repaid EUR 3.5 million of the original EUR 8.5 million financing. The bond issue will enable the group to fully repay its remaining debt to the agency.
FERN Group bonds, each with a nominal value of EUR 1,000, will be offered to retail and institutional investors in the Baltic countries. The bonds will be offered to the public until September 11th. They will be distributed by Šiaulių Bankas.
An online presentation and a question-and-answer session for investors will take place on September 3 at 3 p.m. The registration link for the event is Here.
The Company also intends to apply to Nasdaq Vilnius for listing of the bonds that will be placed on the First North alternative securities market.
Cobalt is acting as legal advisor for the FERN Group bonds. The accounting firm Audifina is acting as trustee for the bondholders.
The FERN-Groupa leading engineering solutions group in Lithuania, includes FERN EPC, FERN Production and Montuotojas companies, which perform general contracting, manufacturing and assembly activities. The group has 65 years of experience on the market and completes more than 250 projects every year in the industrial, energy, logistics, oil, wood processing, chemical, paper, food and agricultural sectors. In 2023, the group achieved a consolidated turnover of approximately 30 million euros.
About the INVL Baltic Sea Growth Fund
With a volume of 165 million euros, the INVL Baltic Sea Growth Fund is the leading private equity fund in the Baltics. Its main investor is the European Investment Fund (EIF).
The EIF, part of the European Investment Bank, has committed EUR 30 million with the support of the European Fund for Strategic Investments (a core element of the Investment Plan for Europe, also known as the Junker Plan), while also providing funding from the Baltic Innovation Fund, an umbrella fund initiative developed in cooperation with the governments of Lithuania, Latvia and Estonia. The aim of the initiative is to increase capital investment in small and medium-sized enterprises with high growth potential in the Baltics.
The fund focused on investments in the Baltic countries and adjacent regions such as Poland, the Nordic countries and Central Europe. The INVL Baltic Sea Growth Fund has already invested in a diversified portfolio of nine companies. These include companies in the food processing, healthcare, medical rehabilitation, civil engineering, plastics recycling, environmental management and veterinary services sectors, as well as the production of cosmetics and hygiene products.
The fund is managed by INVL Asset Management, the leading alternative asset manager in the Baltics and part of the Invalda INVL Group, which has been active in the investment management business for more than 30 years. The group’s companies manage assets worth more than EUR 1 billion across multiple asset classes, including private equity, forests and agricultural land, renewable energy, real estate and private debt. The group’s activities also include family office services in Lithuania, Latvia and Estonia, pension fund management in Latvia and investments in global third-party funds.
The following person is authorized to provide further information:
Vidas Venckus
Partner of the INVL Baltic Sea Growth Fund
[email protected]