Riga – Eco Baltia, the largest environmental resource management and recycling company in the Baltics, completed full repayment of its outstanding bond obligations on February 17th, according to a company statement. The group redeemed €8 million in unsecured bonds at maturity and repurchased €10 million in unsecured bonds nine months ahead of schedule, at 101% of nominal value, plus accrued interest.
The early repayment and full settlement of the bonds demonstrate the company’s long-term financial stability and responsible management of liabilities in the capital market, Eco Baltia stated. “The bond market gave us the opportunity to diversify funding sources and strengthen financial, as well as corporate governance standards,” said Māris Simanovičs, Chairman of the Board of Eco Baltia. “At the same time, it helped to implement strategically important steps in the group’s development and financial planning, including promoting the company’s resilience in changing market conditions.”
The bond obligations were fulfilled following a refinancing transaction completed in December of last year, which provided longer-term financing and allowed for optimization of the company’s debt structure, maintaining predictability and financial discipline, according to Eco Baltia. The company reported that the successful bond issuance and high investor interest demonstrate its recognition as a reliable issuer, creating a stable platform for future development.
Eco Baltia expressed gratitude to the 350 investors from Latvia, Lithuania and Estonia for their trust and participation in both bond issuances. The initial €8 million unsecured bond issue, carrying an 8% annual interest rate over three years, was issued in February 2023, with investor demand exceeding the offer by 3.5 times. A second issuance of €10 million bonds, with a 9% interest rate, followed in November 2023, attracting demand 1.7 times the available amount.
Vytautas Plunksnis, partner at INVL Baltic Sea Growth Fund and Chairman of the Eco Baltia Council, stated, “We invested in Eco Baltia in 2020, and during our participation, the company has expanded from operating only in Latvia to strengthening its presence in Lithuania, Poland, and the Czech Republic. Access to the capital markets was a crucial part of our strategy, ensuring sustainable growth. We do not rule out the possibility of returning to the capital markets in the future with new projects.”
Eco Baltia’s Finance Director and Board Member, Santa Spūle, added that the refinancing allowed the company to restructure existing financial obligations and secure additional financial capacity for flexible cash flow planning and adjusting funding volumes to actual needs.
