Civinity, one of the largest building maintenance and engineering solutions groups in the Baltics, has successfully completed a public bond issue of EUR 8 million, attracting nearly 70 private and institutional investors.
The placement of the two-year bond issue took place in a single round of almost two weeks. The bonds, with a yield of 5%, were purchased by 65 different institutional and private investors. The Group will use the funds raised to finance expansion projects and to automate business processes and develop new digital solutions. Part of the funds will also be used to refinance the 2017 bond issue.
“This is the first public bond issue by a player in the building maintenance market in the Baltics. We are pleased to see that our Group’s bond issue has attracted a lot of attention from investors. This reflects not only the interest of capital market players in the property maintenance segment, but also their confidence in the development of the Civinity Group and our long-term strategy, which is focused on the development of smart products in the building maintenance and engineering solutions sector,” says Davidas Jacka, shareholder and CEO of Civinity Group.
“The issue of Civinity bonds was underwritten by AB Šiaulių bankas and the company was advised on legal issues by law firm TGS Baltic. The newly issued bonds of the company will soon be listed on First North, an alternative securities market operated by Nasdaq Vilnius.
This is not the Group’s first successful step into the bond markets. The Group has made a strategic choice of a bond instrument to secure its growth and is pursuing it with determination. 4 years ago, a non-public bond issue with a nominal value of EUR 11 million was placed and redeemed by funds managed by a Polish investment company.
“Civinity has been making strides in the capital markets with confidence and direction – it started with a private placement and has now successfully placed a public issue to a wide range of investors. The next step is coming soon – the listing of the bonds on the First North stock market. So there is no doubt that the Group’s visibility and investor base will continue to grow”, says Tomas Varenbergas, Director of Markets and Treasury Department of Šiaulių bankas.
“Civinity is one of the largest building maintenance and engineering solutions groups in the Baltics. The company brings together more than 20 companies that maintain 10 million sqm of residential and commercial buildings and have installed several thousand engineering systems in different European cities. “The Civinity team has 1,500 employees in Lithuania, Latvia and the UK. In 2020, Civinity’s revenue was almost EUR 52 million and EBITDA was EUR 3.87 million.