AUGA group
Notification on material event

The first tranche of AUGA group green bonds programme will be offered next week

Organic producer AUGA group confirmed the final terms of the first tranche of its green bonds programme, which will be offered for subscription on December 2-6 this year. Being the first fully privately-owned entity in the Baltic states to issue green bonds, the company will seek to raise up to EUR 20 million via a public offering in Lithuania and Estonia.

As stated in the prospectus for the programme of the offering of bonds, approved by the Bank of Lithuania the company can issue the bonds in the amount of up to EUR 60 million. The bonds will be issued in tranches and offered to private and public investors.

The final term sheet of the first tranche of bonds indicates that the offering of up to EUR 20 million will be issued, and the nominal value of one bond will be EUR 1000. Maturity date is 11 December 2024, annual interest – 6 per cent. The bonds have 100% collateral coverage by the land owned and cultivated by the group companies in Lithuania.

LHV bank is a global lead manager, bookrunner and arranger of the programme, Šiaulių bankas – a syndicated sales agent in Lithuania. Nevertheless, the subscription orders may be submitted through any financial institutions that are members of AB Nasdaq Vilnius. All issued bonds will be admitted to trading on the Baltic Bond List of Nasdaq Vilnius.

The bond programme of the company was evaluated by the Center for International Climate Research (CICERO), which provides second opinion for the majority of green bonds issued around the world. Independent reviewers acknowledged that company bonds are in line with the stated definition of green bonds within the International Capital Market Association Green Bond Principles. The fact that the company received green rating from the independent auditors confirms that its projects actually contribute to the reduction of the environmental impact in the long term.

„After successful execution of secondary public offering of shares last year and the implementation of unique governance model in Lithuania with independent board, the use of this new financial instrument to attract investment into development of sustainable agricultural business is a natural step for the company. Despite of the fact that agriculture generates almost one quarter of global greenhouse gas emissions, we don’t see companies of this sector in the green bonds market. AUGA group is also the only listed private capital company in the Baltic States that received green bonds rating. We expect that the investor community as well as private individuals will contribute to the implementation of our ideas, even more so in the context of today’s low interest rates we offer especially attractive return on investment “, - says Dalius Misiūnas, Chairman of the Board of AUGA group.

AUGA group has set itself a goal of minimizing greenhouse gas emissions from its operations.

To accomplish this, the company is applying a closed-loop organic farming model that seeks synergies among different brands of agriculture and secondary use of organic waste in the farms. The company uses min-till technologies in most of its cultivated lands. These technologies protect soil from erosion, preserve biodiversity and reduce fuel consumption, thus reducing greenhouse gas emissions. Certified green energy produced from renewable energy sources is used in all production and administrative facilities.

The company measures greenhouse gas emissions from its operations. At present most of the emissions are from the use of fossil fuels, emissions from cultivated soil and cattle enteric fermentation. In order to reduce emissions in these areas, AUGA group is developing biogas application technologies to replace the fossil fuels used in agricultural machinery once the biogas tractor is developed. Crop rotation will be improved to achieve the increased proportion of crops with carbon sequestration and nitrogen accumulation properties, thus, absorbing CO₂ from the atmosphere and reducing greenhouse gas emissions. The company is also developing specialised feed technology to ensure forage preparation and feed composition in order to substantially reduce methane emissions from bovine enteric fermentation.

AUGA seeks that the food it produces is not only good for consumers but also good for the planet – grown in a sustainable, environmentally friendly way.

About AUGA group:

AUGA group is the largest vertically-integrated organic food company in Europe. The group of companies in organically certified arable land develops sustainable farming model, based on new technologies, specializing in crops, dairy cows, chicken and mushroom growing. Using proprietary and contracted manufacturing, the company produces a wide range of organic food products for the end consumer as well as organic commodities. The group of companies employ over 1,200 people.  AUGA group is listed on the NasdaqVilnius and Warsaw stock exchanges.

IMPORTANT NOTICE:

This notification is not for distribution to United States newswire services or for dissemination in the United States, Canada, Japan or Australia or elsewhere where such dissemination is not appropriate.

Distribution of this announcement and other information in connection with the public offering may be restricted by law in certain jurisdictions. Persons into whose possession this announcement or such other information should come are required to inform themselves about and to observe any such restrictions.

No offer or invitation to acquire securities of the Company is being made by or in connection with this notification. Any offering of securities to the public shall be made only on the basis of information contained in the Prospectus. The Prospectus shall be the sole legally binding document containing information on the Company and the offering of securities as well as on admission of Company’s securities to trading on regulated market AB Nasdaq Vilnius which, when published with the Final Terms of the respective Tranche Bonds and other related documents, shall be obtained from the website of the Company (www.auga.lt), as well as they shall be published on www.crib.lt, www.nasdaqbaltic.com, www.gpwinfostrefa.pl and www.gpw.pl. Additionally, for information purposes only, the Prospectus, Final Terms of the respective Bonds and other related documents shall be published on the Global Lead Manager’s AS LHV Pank website (www.lhv.ee).

Approval of the Prospectus should not be understood as an endorsement of the securities offered and admitted to trading on a regulated market. The potential investors are recommended to read the Prospectus before making an investment decision in order to fully understand the potential risks and rewards associated with the decision to invest in the securities.

The Prospectus has been prepared on the basis that there will be no public offers of the Company’s Bonds, other than the offering to the public in the territories of the Republic of Lithuania and of the Republic of Estonia in accordance with the Regulation 2017/1129.

The securities referred to herein have not been and will not be registered under the US Securities Act of 1933, as amended, and may not be offered or sold in the United States or to US persons unless the securities are registered under the Securities Act, or an exemption from the registration requirements of the Securities Act is available. No public offering of the securities will be made in the United States.