Evernord completes the eighth issue of Marias 2 bonds: almost EUR 5.3 million were raised

The financial brokerage firm Evernord has issued EUR 5.275 million worth of bonds of Evernord Real Estate Fund III and Marijas 2 SIA, a company managed by the Estonian development company Novira Capital, in the eighth round of the public offer. The funds raised finance the construction of Novira Plaza Riga, a business complex in the centre of Riga, in which Evernord Asset Management has a majority stake.

The bonds issued by Marijas 2 SIA have an annual yield of 8.5%. The project has already attracted EUR 37.3 million of investor funds through bonds in all eight phases. The bonds mature on 30 May 2024.

"Double-digit yield bonds have become commonplace in the market, so a successful issue that stays within this threshold must be distinguished by its quality and the trust it has earned with investors. The eighth round of Marijas 2 SIA debt placement already confirms that the investment is in a promising, well thought out and structured project, implemented by a professional and responsible team," noted Vismantė Šepetienė, Director of Evernord.

Novira Plaza is a modern Class A business centre being completed in the heart of Riga. The business complex is characterised by its sustainable solutions, abundance of green spaces and advanced infrastructure suitable for pedestrians, cyclists and motorists. The developers are aiming for LEED Platinum certification in the first year of the building's operation.

Novira Plaza is expected to be completed by the end of this year.

The co-working spaces in Novira Plaza will create 250 jobs for entrepreneurs, freelancers, start-ups and companies looking for a flexible and dynamic working environment. Lease agreements with the business complex have already been signed by well-known companies operating in the Baltic States, including PwC Latvia, SIA Wolt Latvia and GoCardless.

Investing in green projects is increasingly attractive


Environmental and climate change mitigation issues are increasingly permeating the investment landscape. The GREENTECH VILNIUS Forum put the greening of the market into a broad context, and Evernord's Vismantė Šepetienė took part in a discussion on what actions and projects can lead to more sustainable urban development and increase the attractiveness of cities for investors.
"When asked how investors feel about green investments, about investing in sustainable projects, my answer is simple: positive. Investing in projects based on ESG standards is becoming increasingly attractive. These projects create solid added value, preserve investment value in the long term, and fuel the green engine: real estate objects developed according to sustainability principles attract companies that comply with ESG standards, and they spread these practices further through their sustainable activities," Vismantė Šepetienė shares her insights after the discussion.
Evernord's Marijas 2 SIA bonds are an example of sustainable investment. The funds raised by the bonds are invested in the construction of the modern business complex Novira Plaza Riga. The business complex is expected to achieve LEED Platinum certification within the first few years of operation.

€2.5 million attracted for an exciting project by the Baltic Sea

Another successful bond placement project! Evernord has completed the first tranche of a EUR 2.5 million bond issue for the real estate development company SBA Urban's Kopų Slėnis apartment project in Palanga, out of a total bond issue programme of up to EUR 6.5 million. Almost 50 investors participated in the private placement, which is secured by real estate.

"When we started cooperation with Kopų slėnis, we anticipated that investors who want to diversify their portfolio by contributing to promising real estate projects would find this opportunity interesting - this is due to the project's concept, its location close to the Baltic Sea coast, and its attractive architectural solutions. We have seen that the project has a strong client interest, which shows its viability and reflects the trust in the developers. As we expected, there was no shortage of investor interest," says Vismantė Šepetienė, Director of Evernord.

The terms of the bond issue were attractive to investors: the maturity is 15 months with an early redemption option after 9 months. The bonds have an annual yield of 9% and interest will be paid semi-annually.


New fund to develop a multi-storey building in Tallinn

"Evernord Asset Management", an asset management company belonging to the Evernord Group, has set up a new fund that has acquired a plot of land with a detailed plan in the centre of Tallinn and intends to develop it into a multi-storey building for residential and commercial purposes.

"Evernord Real Estate Fund V is a closed-end fund for informed investors.

"The new building will be located in the centre of Tallinn on Tartu Street, within walking distance of the Old Town. There is a strong demand for new housing in this part of the Estonian capital, so the new Evernord Real Estate Fund V will provide an attractive opportunity for investors to invest indirectly in a promising residential and commercial development. The future building will offer unparalleled views of the harbour and the sea. The project will be developed in a strategically attractive location, which is particularly important for real estate investments," notes Jolanta Jurga, Head of Evernord Asset Management.

The building is planned to have more than 16,000 square metres of apartments and office space. Construction is expected to be completed by the end of 2025, with the closure of the Fund scheduled for 2026-2027, following the sale of the apartments and office space.

Evernord Real Estate Fund V's Tallinn project will also include the company's Estonian partners Novira Capital.

At the beginning of this year, Evernord Asset Management closed its fund Evernord Real Estate Fund II early, following the successful sale of Buroo 31, an office building in Tallinn managed by the fund. The fund had an internal rate of return (IRR) of 14.3%.


Public issue of Marijas 2 SIA bonds: bonds of a company developing a business complex in Riga - an attractive investment opportunity

An attractive investment opportunity: the bonds of Evernord Real Estate Fund III and Marijas 2 SIA, a company managed by Estonian development company Novira Capital, are publicly traded until 2 June.

The funds raised by the bonds are invested in the construction of Novira Plaza, a modern business complex in Riga.

Information on the 6th public round of the Marijas 2 SIA bond issue:

  • Issuer: SIA Marijas 2
  • Country of incorporation: Latvia
  • Type of securities: Real estate mortgage-backed bonds
  • Size of the 6th tranche: up to EUR 4 million
  • Yield: 8,5%
  • Maturity date: 30-05-2024
  • Listing: Application for listing on the Nasdaq First North exchange in Riga
  • Read more about the project: https://noviraplaza.lv/en

Anyone wishing to take advantage of this investment opportunity can contact Evernord FMI: obligacijos@evernord.com

This information should not be construed as legal, financial or tax advice of any kind. Before making an investment decision, investors should consult independent financial advisers who are qualified to advise on this type of investment and to assess whether the risks of investing in these bonds are acceptable.


Dehidra issues EUR 4 million bond: the company will expand in foreign markets

The financial brokerage firm Evernord has placed a EUR 4 million bond for Dehidra, a producer of freeze-dried products. The largest strawberry grower in the Baltics and one of the largest producers of freeze-dried products in Northern Europe intends to use the funds raised in the bond issue to expand its operations.

The two-year bond issue by UAB Dehidra was issued to private investors on a private placement basis, with an annual yield of 12% and interest payable semi-annually. The bonds will be redeemed on 10 May 2025.

"We have been working with Dehidra since 2021, when we also issued €4 million worth of Dehidra bonds in two phases. During these two years, the company has strengthened its production capacity, rapidly increased sales and expanded in export markets. The company, which operates in an interesting market, is one of the relatively rare companies in the agricultural sector engaged in high value-added, state-of-the-art production, and is therefore of interest to investors, both for its uniqueness and for its well-appreciated prospects," says Vismantė Šepetienė, Director of Evernord FMI.

According to V.Šepetienė, the issued bonds will soon be registered with the Central Securities Depository "Nasdaq CSD SE".

"After two years of working with Evernord and successfully deploying borrowed funds, we have made significant progress and grown the value of our business. Simply put, we were gaining momentum, so it was only natural to use the bonds again to finance the planned further expansion. We will use the borrowed funds to expand our export geography - we are already present in South Korea, the United Kingdom and Germany, and we intend to expand our export markets to Taiwan and the United States," says Vykintas Misiūnas, Dehidra's CEO.

In 2022, Dehidra's sales revenues amounted to EUR 4.2 million, of which exports accounted for 60%. In 2023, revenues are expected to reach EUR 10 million, with exports accounting for over 80%.

"Dehidra's product portfolio includes freeze-dried fruit and berries, snacks and smoothies. In mid-2022, Dehidra built a modern plant with two freeze-dryers as part of its first expansion phase. The plant is used for freeze-drying and packaging of own-brand Summmer products, UK brand Mixologist's Garden additives for beverages, and products for wholesalers in export markets, used as additives in the food and beverage industry. The company also supplies its own strawberries to major supermarket chains in Lithuania.

In 2024, the company plans to build two more freeze-dryers in addition to the two existing ones, increasing its annual revenue to almost €20 million.

"Dehidra has partnered with DOLE (formerly Total Produce), the world's largest supplier of fruit and vegetables to supermarkets and businesses, to sell Dehidra's produce on the international market.


"Evernord" approves EUR 6.5 million sale of 66% stake in "GET Baltic"

This week a major transaction took place in Lithuania - the gas transmission system operator Amber Grid and the German energy exchange European Energy Exchange AG (EEX) signed a EUR 6.5 million agreement for the sale and purchase of a 66% stake in the Baltic and Finnish gas exchange GET Baltic Gas Exchange. The transaction was approved by Evernord FMI - as it is well known, under Lithuanian law, company share transactions do not always require a notarial form, and can also be executed by a brokerage firm. We are delighted with the confidence of the counterparties and the opportunity to not only observe a significant transaction on the market, but also to be directly involved in its execution!


Investors are encouraged to lend when yields are rising, inflation is expected to slow down, and central bank policies are favourable

After a stressful year and difficulties in raising capital, borrowers are attracting a lot of investor interest.

In the first 18 days of the year, businesses and governments around the world have already issued almost €600 billion of bonds. That's the most active start to a year in bond markets in history, according to data compiled by Bloomberg.

After a downward spiral last year not only for equities but also for debt securities, businesses and governments faced worsening borrowing conditions, but at the start of this year issuers are seeing a sudden surge in enthusiasm from investors willing to lend.

The latter is driven by yields on debt markets not seen for 15 years and by investors' expectations of a slowdown in inflation and, consequently, of central banks cutting interest rates, possibly as early as the end of this year. This is pushing investors to lock in elevated yields.


Successful closure of the fund managing an office building in Tallinn with a 14.3% internal rate of return (IRR) for investors

"Evernord Asset Management, the asset management company belonging to the Evernord Group, has seized a favourable opportunity to realise the value created by closing its fund Evernord Real Estate Fund II, which manages an office building in Tallinn, a year and a half ahead of schedule.

"Evernord Real Estate Fund II was established in June 2019 and was a EUR 10 million fund invested in Buroo 31, a 6-storey office building in Tallinn.

"The uncertainty in the market and concerns about declining liquidity helped us decide. Especially as there was a strong offer from a buyer on the other side of the scale. I am confident that the decision to exit early with an agreed price is in the best interests of investors and is appropriate from a risk management perspective. The return of funds will allow investors to take advantage of new investment opportunities. Equity is becoming a crucial factor in the context of the high cost of borrowed funds," notes Jolanta Jurga, Director of Evernord Asset Management.

Over the last year and a half of the fund's operation, the company has been interested in the possibility of realising the building earlier than planned on favourable terms. During this period, four negotiations have been held with potential buyers of the Tallinn building managed by the fund.

The sale of the building was finalised on 15 December, immediately followed by a decision to liquidate the Fund. All units of the Fund were redeemed from investors by the end of 2022.

The building in Tallinn, managed by Evernord, is currently fully let and has a well-diversified tenant base. The building has an annual yield of 6%. The fund's investors' internal rate of return (IRR) was 14.3%.


Why is the number of closed-end funds in Lithuania the highest and what does this mean for investors?

Experts in the Lithuanian market for funds for wealthy investors are currently struggling to imagine a liquidity crisis that would lead to a rapid sell-off of assets and turbulence in the real estate sector, private equity or private debt market.

In recent weeks, liquidity woes in the camp of Blackstone, the world's largest alternative investment manager, have caused concern in some segments of the financial markets.

The Blackstone Real Estate Income Trust (BREIT), a real estate investment trust launched by the manager in 2017, has a size of around EUR 69 billion. It has recently seen a crowd of wealthy clients looking for the exit door. Recently, the volume of client withdrawal requests has exceeded the expected quarterly limit.

The BREIT challenges are not only relevant because of the potential implications for the property market, but also highlight the challenges faced by managers of funds invested in illiquid assets.