On 18 June 2021, Summus Capital issued unsecured bonds in the amount of EUR 10 million with maturity of 3 years and fixed coupon rate of 6.75%. The bonds were issued at a price equal to their nominal value. This is the first bond issue for Summus Capital and the issuer plans to include the bonds in Nasdaq Baltic alternative market First North. Proceeds raised from the bond issue will be used to finance acquisition of new investment properties in the Baltics.
The bond issue was oversubscribed, demonstrating strong investor interest in the Baltic real estate sector, with total demand reaching EUR 11 million. More than 40 investors from all three Baltic countries, including both institutional investors, such as Baltic bond funds, several banks and investment companies, and private investors, participated in the private placement. Overall, 52% of the issue was subscribed by institutional investors and 48% by private investors.
Chairman of the Board of Summus Capital Boris Skvortsov comments that with this first bond issuance Summus Capital has taken steps to become an institutional real estate investor in the Baltic markets whose brand name is known not only to financial institutions and market professionals but also to larger network of investors.
The sole Arranger of the bond issue was Signet Bank AS. The Bank’s capital markets team provides support for Baltic companies in structuring and placing debt and equity transactions on the capital markets – this year besides Summus Capital, Signet has already arranged two issues, namely ELKO Group (EUR 20 million) and AS mogo (EUR 30 million).
Roberts Idelsons, CEO of Signet Bank AS: “It is one of Signet Bank priorities to bring new ambitious issuers to the Baltic capital market and the bond issue of Summus Capital is a great example of that. We are honoured to assist leading pan-Baltic commercial real estate investor Summus Capital in their inaugural bond placement, which saw strong investor interest and was oversubscribed, demonstrating the investors’ continuous interest and belief in the long-term perspective of the Baltic real estate market, and providing one more evidence that bond issuance is an effective tool for Baltic companies to raise financing. We are confident that Summus Capital, with its strong shareholder and experienced management team, will have a long and successful journey in capital markets.”
