Nasdaq (NDAQ) announces that bonds issued by Capitalica Baltic Real Estate Fund I, which is managed by Capitalica Asset Management, have been admitted to the Nasdaq Baltic First North bond market by Nasdaq Vilnius as of today, July 30. Funds raised in the public bond issue will be used to finance the development of the VERDE complex of two class A business centers in Riga.
The fund’s bonds have a nominal value of EUR 100 each and a total issue size is EUR 3 million. The bonds have a maturity of three years and an annual coupon rate of 5% with interest paid quarterly.
“Nasdaq welcomes Capitalica Baltic Real Estate Fund I to the Nasdaq Baltic First North market. We wish the company all success in pursuing its goals of business expansion, making use of the possibilities that the Baltic public securities market offers,” says Saulius Malinauskas, the President of Nasdaq Vilnius. “We are delighted that after a successful public offering the company has chosen to list its bonds on the Baltic First North bond market, thus increasing investment opportunities for Baltic investors.”
According to Andrius Barštys, the CEO of Capitalica Asset Management, which is part of the SBA Group, there were several reasons for deciding to go to the Baltic capital market. They included a desire to contribute to the development of the region’s capital market and increase the choices available to both experienced and newer, non-professional investors. At the same time, the public listing offers more opportunities and freedom to implement projects and not depend on anyone source of funding.
“Investment in bonds backed by commercial real estate is still taking its first steps in Lithuania, while in the Western world additional ways to finance real estate projects besides just bank financing are an established practice. In only the first phase, bonds for EUR 3 million were placed. That exceeded our expectations, broadening our palette of financial instruments and diversifying our sources of financing. In the future, we will continue to consider using additional market instruments, directing the flows of financing to commercial real estate projects and providing long-term returns for our investors,” Andrius Barštys says.