DelfinGroup bond issue is 1.5 times oversubscribed, demand reaches 22.3 million euros
Latvian financial technology or fintech company DelfinGroup announces that it has successfully raised 15 million euros at a fixed interest rate of 10% in a public bond offering. Total demand for the bonds was significantly higher at 22.3 million euros from more than 2,700 retail and institutional investors, exceeding the initial offering by 1.5 times.
Didzis Ādmīdiņš, Chairman of the Management Board of DelfinGroup, says: "We have not only achieved, but also significantly exceeded our target - total demand for bonds was almost 50% higher than the issue size. The company now has 9,500 shareholders who have shown their confidence in DelfinGroup and more than 3,000 bondholders. Their high level of interest is a clear signal of confidence in our company, its solid business model and strong corporate governance. Thanks to the bondholders for this confidence!”
"The majority of the 2,700 investors come from Estonia, but in terms of investment, 60% of all demand comes from Latvian investors. The average subscription order size is 8.2 thousand euros," explains D. Ādmīdiņš.
In total, DelfinGroup has completed 13 bond issues, most of which have already been successfully redeemed. For more than 10 years, the company's growth has been supported by a diversified funding structure, allowing investors to invest in shares, bonds, and on a P2P platform.
“Thanks to the successful public bond issue, the company will streamline the cost of its financial liabilities and refinance existing bonds. We will continue to work towards diversified financing in the future,” says D. Ādmīdiņš.
"DelfinGroup has been raising funds in the bond market since 2013, but 2024 was the first time the company has issued public bonds across the Baltics, appealing not only to its institutional investors but also to retail investors, who could participate in the issue starting from 100 euros. We are pleased that Latvian investors have been active and accounted for the majority of the total demand," comments Edmunds Antufjevs, Head of Investment Banking Signet Bank AS, the arranger of the bond issue.
As a result of the high demand, the bonds were allocated to investors according to the following principles: 1) the company's employees and all existing bondholders who participated in the exchange offer received their full allocation, subject to the exchange ratio; 2) the company allocated the remaining bond orders with the aim of building a stable investor base, with an average allocation of 50% to 60%.
At the time of the subscription, holders of DelfinGroup bonds with maturity on September 25 this year and ISIN LV0000850055 had the option to exchange their bonds for new DelfinGroup bonds. Most of the bondholders exchanged their existing bonds.
DelfinGroup bonds will be listed on the Nasdaq Riga Baltic regulated market. DelfinGroup will use the funds raised from the new bond issue for its strategic purpose - to refinance the company's existing bonds and liabilities.
The issue was arranged by Signet Bank AS, sales agent in Estonia was LHV Pank AS and the legal advisor was Eversheds Sutherland Bitans.
About DelfinGroup
AS DelfinGroup is a licenced fintech company established in 2009 and operates under the brand names Banknote and VIZIA. The company has been profitable every year since 2010. DelfinGroup continuously develops and offers consumer and pawn loans, loans developed for senior citizens, Buy now pay later loans (BNPL loans), and the sale of pre-owned goods online and at more than 90 branches across Latvia and Lithuania. Since 2014, DelfinGroup has been known on the Nasdaq Riga Stock Exchange as a bond issuer and, since 2021, as a listed company on the Baltic Main List. The company regularly pays dividends to its shareholders. The sustainability of DelfinGroup is based on focused corporate governance, fintech innovation, responsible lending, financial inclusion, and facilitating the circular economy.
For further information, please contact:
Artūrs Dreimanis
DelfinGroup Head of Treasury and Investor Relations
Phone: +371 26189988
E-mail: IR@delfingroup.lv
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