Nerijus Aukščiūnas, Head of Treasury at SBA Group stated:
‘We are consistently pursuing our strategic direction of diversifying the financing instruments used not only in real estate business, but in traditional manufacturing industry as well. Our forecasts have been confirmed – the market has expressed interest in opportunities to invest in a stable business with stable, investment risk corresponding return. The majority – 80% of the first part of the issue – was acquired by corporate and institutional investors.’
One bond issued by SBA Furniture Group has a nominal value of EUR 1,000 and a minimum investment amount of EUR 20,000. The total value of the company’s bond issue is EUR 8 million. According to Aukščiūnas, as planned, the remaining part of the bonds worth more than EUR 5 million will be offered to investors by mid-year. Redgate Capital, an investment banking firm in the Baltic states, acts as lead arranger for SBA Furniture Group bond distribution.
The funds raised will be used for early repayment of part of the loans used to finance the expansion of the furniture manufacturing companies, thus implementing strategic change in SBA Furniture Group debt portfolio financing structure. This decision will also allow to free up cash flow for future periods and prepare for the planned new business growth phase in the future.
The bond issuing company, SBA Furniture Group, is one of the largest furniture exporters in the Baltic states. Its audited sales in 2022 were EUR 389 million.
