AS Grenardi Group to issue bonds with a 10% interest, subscription opens 25 March
The Bank of Latvia has approved the Base Prospectus of the secured bond issue of AS Grenardi Group (a parent company of GRENARDI and GIVEN stores), the most rapidly growing jewellery retailer in the Baltics. This enables the Group to raise up to EUR 17 million under a bond programme through a public offering in all three Baltic States, whereas in the first tranche it is planned to raise up to EUR 12 million. Both retail and professional investors will be offered to invest in Group's bonds with a fixed interest rate of 10% and a maturity of three years. The subscription period will start on 25 March and end on 15 April.
Ģirts Rudzītis, the Chairman of the Management Board and the CEO of the AS Grenardi Group, says: "In nearly 25 years, from a locally owned company and a small family venture, we have grown into the leading jewellery retail network in the Baltics. We plan to strengthen our leadership in the region even further. The Group's robust financial performance in 2023, marked by double-digit growth in turnover and EBITDA, serves as evidence supporting the rapid regional expansion. We are delighted that this bond issue will be available to the wider public, allowing both professional and retail investors, including our clients, to participate in the Group's success story.”
Proceeds from the bond issue will be directed towards refinancing the Group’s existing bonds, as well as financing further growth – expansion of its store network and assortment and financing of acquisition transactions.
The arranger of the bonds issue is AS Signet Bank, while legal advice is provided by law firm Eversheds Sutherland Bitāns.
“As an experienced issuer with two bond issues already listed on Nasdaq, AS Grenardi Group is a great example of how a company can successfully use capital markets financing to achieve its growth strategy. We are glad that through the public offering, both Baltic retail investors, as well as the Group’s broad client base will have the opportunity to invest in the bonds and become a part of the Group’s investor loyalty programme,” says Kristiāna Janvare, the Managing Director of Investment Banking of AS Signet Bank.
Main terms of the offering
During the public bond offering in Latvia, Estonia, and Lithuania AS Grenardi Group will offer investors to purchase up to 120 000 bonds with a nominal amount of EUR 100 per bond, annual fixed interest rate of 10% and a maturity of three years. The subscription is open to both professional and retail investors, and includes an exchange offer to investors of existing bonds maturing in April 2024. The bonds will be secured by pledges on assets of AS Grenardi Group subsidiaries, which primarily consist of high-liquidity gold jewellery. This provides investors with additional level of comfort when making their investment.
Investors loyalty programme
AS Grenardi Group will offer investors to join a loyalty programme. Investors committing over EUR 500 during the initial bond offering unlock the exclusive opportunity to enroll in its loyalty programme. This entitles them to enjoy a 15% discount on purchases made at GRENARDI and GIVEN stores, along with tailored benefits based on their investment amount.
Timetable of the offering
Start of the offering period 25 March 2024 at 10.00 EET
End of the offering period 15 April 2024 till 14.00 EEST
Announcement of the results 16 April 2024
Settlement 19 April 2024
About AS Grenardi Group:
AS Grenardi Group is the parent company of GIVEN and GRENARDI in the Baltics. As of December 31, 2023, Grenardi Group operates a total of 82 stores – of which 75 GIVEN chain stores and 7 GRENARDI chain stores. Additionally, the Group has five online stores: www.given.lv, www.given.ee, www.given.lt, www.grenardi.lv and www.grenardi.ee.
GIVEN is a jewellery brand that stands for joy, beauty, love, creativity, and sustainability by expressing this in its jewellery – through design, unique collections of brands, and carefully considered details, making the valuable accessible.
GRENARDI has been the leading luxury jewellery retail chain in Latvia and Estonia for more than 20 years. GRENARDI offers an extensive assortment of world-renowned luxury jewellery brands and sophisticated private collections.
Disclaimer: This announcement is an unpaid marketing communication in accordance with the Prospectus Regulation and does not constitute investment advice or an offer. The information provided herein contains statements on the Public Offering of notes of AS "Grenardi Group". Every investment decision must be based on a base prospectus approved by the Bank of Latvia and the final terms. An approved base prospectus and final terms are available on AS “Grenardi Group” website (https://grenardi.group).
Marta Andersone
CFO
info@grenardi.group
Tel.+371 67796000
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