Evernord, a financial brokerage firm (FMI), has launched a private placement of EUR 2 million worth of bonds of UAB Legal Balance, a debt management company. The latter intends to invest the funds raised in expanding its existing markets (Lithuania and Latvia) and entering new markets. Part of the funds will also be used to develop new products and services.

The bond issue was issued on a private placement basis to private investors.

Subject to the necessary approvals, the bonds are planned to be listed on the stock exchange and traded on the secondary market. Within three months after the bonds become effective, it is planned to apply to Nasdaq Vilnius AB for the listing of the issue on First North, the alternative market in Lithuania operated by the exchange.

The interest rate of the issue is 8%. It will be paid quarterly. The three-year bonds will be redeemed on 10 November 2025. The securities are accounted for by Šiaulių bankas AB, the trustee is Audifina UAB, and the certified advisor for the planned listing is the law firm Sorainen ir partneriai.

“This issue confirms that investors are interested in various business sectors, especially now that the bond market is dominated by real estate development projects. In this case, by issuing the bonds of a debt management company, we have offered investors to diversify their investment portfolios. This proved to be a good opportunity for them. Other attractive aspects of the issue were the interest rate and the asset backing. “This is not the first time we have underwritten a Legal Balance bond issue and we have been working with the company for three years. However, this is the first time that these debt securities will be planned to be listed, which should provide additional liquidity to the bonds,” notes Vismantė Šepetienė, Director of Evernord FMI.

Marius Šlepetis, CEO of Legal Balance, says that this financial injection is also the beginning of a new phase for the company – accelerated digitalisation of services and the introduction of artificial intelligence solutions. This, he says, will make processes more efficient and faster, and will facilitate and simplify access to services for clients.

“We are a sustainable, systematically growing market player that is careful and thorough in its investment analysis. Our professional team, responsible corporate governance and ethical work with our clients set us apart in the market. The fact that investors see this and trust us with their investments inspires them to continue on their chosen path,” says Mr Šlepetis.

Legal Balance, a debt management and recovery company, will also announce its three-quarter results this month. This year, compared to the same period last year, the company has recorded very strong growth both at home and in the relatively fresh Latvian market.

In Lithuania, Legal Balance’s EBITDA in the comparable three-quarter period increased from EUR 1.2 million last year to around EUR 1.9 million this year. Pre-tax profit for the first three quarters almost doubled from EUR 714 thousand last year to EUR 1.3 million this year.

The 9-month EBITDA (earnings before interest, taxes, depreciation and amortisation) of SIA Legal Balance of Latvia increased from EUR 50 thousand to EUR 352 thousand this year compared to the same period last year. Pre-tax profit increased from almost EUR 44 thousand to almost EUR 346 thousand.

Legal Balance generates most of its income from debt portfolios, which the company buys from banks and other companies. The debt management self-service platform Eskolos.lt contributes less.