14th of August, AS Grenardi Group launches a new bond offer with an annual interest rate of 10%
AS Grenardi Group, the most rapidly growing jewellery retailer in the Baltics (a parent company of GRENARDI and GIVEN stores), announces a public offering of a bond issue for a total amount of EUR 5 million. Of this amount, EUR 4 million will be contributed to the refinancing of existing liabilities. The bonds will bear a fixed interest rate of 10% and a maturity date of 30 August 2027.
The offer for the second tranche is made pursuant to the base prospectus for the AS Grenardi Group bond issue, dated 20 March 2024, which was approved by the Bank of Latvia. This tranche, amounting to EUR 5 million, is further detailed in the final terms and conditions approved by the company's Board. The total amount of the new bond issue will allow the issuer to raise up to EUR 5 million, with the financing being used to refinance the existing bonds listed by First North and to further develop Group's growth and increase its product range. The bonds will be available to both retail and professional investors in Latvia, Lithuania and Estonia. The subscription period will start on 14 August and end on 27 August.
"The new bond issue aims not only to refinance existing liabilities, but also to strategically contribute to the growth of the AS Grenardi Group. These funds will enable us to diversify our product range and expand our store network. We believe that this initiative will not only strengthen the competitiveness of our company, but will also create added value for our customers and shareholders," comments Ainārs Spriņģis, Chairman of the Board of AS Grenardi Group.
The arranger of the bonds issue is AS Signet Bank, while legal advice is provided by law firm Eversheds Sutherland Bitāns SIA.
"AS Grenardi Group, which has successfully issued bonds on Nasdaq previously, demonstrates how a company can effectively use capital market resources to drive its growth. This public offering provides an opportunity for Baltic retail investors and the Group's clients to invest in the bonds and participate in the investor loyalty programme," said Kristiāna Janvare, Head of Investment Banking at 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 50 000 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. The offer also includes an exchange opportunity for holders of bonds with ISIN code LV0000860104 and maturity date in July 2025 to exchange their existing bonds for new bonds. 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 an 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. More information on the loyalty programme is available at https://grenardi.group/en/investors/.
Timetable of the offering
Start of the offering period 14 August 2024
End of the offering period 27 August 2024
Announcement of the results 28 August 2024
Settlement 30 August 2024
About AS Grenardi Group:
AS Grenardi Group is the parent company of GIVEN and GRENARDI in the Baltics. As of June 30, 2024, AS Grenardi Group operates a total of 81 stores – of which 74 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).
Dāvis Cēderštrēms
Deputy CFO
info@grenardi.group
Tel: +371 67 796 000
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