INVL Baltic Sea Growth Fund-backed FERN Group launches EUR 8 million public bond offering
FERN Group, a leading engineering solutions group in Lithuania and a portfolio company of the INVL Baltic Sea Growth Fund, the foremost private equity fund in the Baltic region, on 29 August 2024 is starting an offering of EUR 8 million of bonds. The bonds will be offered publicly to retail and institutional investors in the Baltics.
The new FERN Group bond issue has a maturity of 2 years. By way of auction, investors can choose an annual coupon rate between 8.5% and 9.5%, where coupon will be paid quarterly. The bonds will be secured by the surety of INVL Baltic Sea Growth Fund in the amount of EUR 8 million.
“We aim to raise funds from investors in the capital markets, with EUR 5 million earmarked for refinancing existing liabilities and other corporate needs,” says Vilija Zapalskienė, CEO of FERN Group and its subsidiaries.
Vidas Venckus, a partner of the INVL Baltic Sea Growth Fund and member of FERN Group’s supervisory council, adds: “This bond offering will give the group more opportunities to grow steadily and achieve its strategic goals.”
Lithuania’s State Investment Management Agency (VIVA) has previously financed operations of the group’s company Montuotojas, and the company has already repaid EUR 3.5 million out of the initial EUR 8.5 million financing. The bond issue will allow the Group to fully cover its remaining debt to the agency.
The FERN Group’s bonds, which have a nominal value of EUR 1,000 each, will be offered to retail and institutional investors in the Baltic countries. The bonds will be offered publicly until 11 September inclusive. They are being distributed by Šiaulių Bankas.
An online presentation and a Q&A session for investors will be held on 3 September at 3 p.m. Event login link is here.
The company also intends to apply to Nasdaq Vilnius for inclusion of the bonds that are placed on the First North alternative securities market.
Cobalt is the legal advisor for the FERN Group bonds. The audit firm Audifina is the bondholders’ trustee.
The FERN Group, a leading engineering solutions group in Lithuania, includes the companies FERN EPC, FERN Production and Montuotojas, which perform general contracting, manufacturing and assembly activities. The group has 65 years of experience in the market and each year completes more than 250 projects involving industrial, energy, logistics, oil, wood processing, chemical, paper, food, and agricultural facilities. In 2023, the group had consolidated revenue of approximately EUR 30 million.
About the INVL Baltic Sea Growth Fund
With a size of EUR 165 million, the INVL Baltic Sea Growth Fund is the leading private equity fund in the Baltics. Its anchor investor is the European Investment Fund (EIF).
The EIF, which is a part of the European Investment Bank, has committed EUR 30 million with the support of the European Fund for Strategic Investments (a key element of the Investment Plan for Europe, or the Junker Plan) while also allocating resources from the Baltic Innovation Fund, a “fund of funds” initiative developed in cooperation with the governments of Lithuania, Latvia and Estonia. The initiative aims to increase capital investment in high-growth potential small and medium-sized enterprises in the Baltics.
The fund focused on investments in the Baltic countries and neighbouring regions such as Poland, the Nordics, and Central Europe. The INVL Baltic Sea Growth Fund has already invested in a diversified portfolio of nine companies. That includes companies operating in the food processing, healthcare, medical rehabilitation, civil engineering, plastic recycling, environmental management, and veterinary services sectors, as well as in the manufacturing 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 in the investment management business for more than 30 years. The group’s companies have more than EUR 1 billion of assets under management 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, management of pension funds in Latvia, and investments in global third-party funds.
The person authorised to provide additional information:
Vidas Venckus
INVL Baltic Sea Growth Fund partner
vidas.venckus@invl.com
