JSC Development Finance Institution Altum unaudited interim condensed report for the twelve-month period ended 31 December 2020
Inside information, 2021-02-26 15:01 CET --
JSC Development Finance Institution Altum Group’s (hereinafter – Altum Group) outstanding portfolio (gross) is of 804 million euros as at 31 December 2020, comprised by 26,578 contracts, including:
· guarantees portfolio of 360 million euros, the total number of contracts 19,265;
· loan portfolio of 302 million euros, the total number of contracts 6,323;
· investments in venture capital funds for the total amount of 73 million euros, the total number of projects financed by funds 268;
· Land Fund of 68 million euros, the total number of transactions 722.
Since the beginning of the year, Altum Group’s financial instruments portfolio has grown by 30.2% (186 million EUR) in terms of volume and by 18.5% (4,141 projects) in terms of the number of projects.
According to the unaudited interim condensed reporting data, in 12 months of 2020 Altum Group has operated at 5.5 million euros profit.
Reinis Bērziņš, Chairman of the Management Board of Altum:
“The last year of ALTUM's operation was marked by several significant events. For the first time, ALTUM's financial instruments portfolio exceeded the threshold of 800 million euros. This was achieved through the targeted development of existing and new solutions to address market gaps, including liquidity support instruments for companies to overcome the effects of Covid-19, the demand peak experienced in the first months of the pandemic. Second, despite the viral pandemic, we saw a high demand for ALTUM's routine financial instruments. Last year, the volumes of SME growth loans and loans for acquiring agricultural land and also the programme of small loans for rural areas increased, where the amount of allocated funding increased by more than 80% compared to 2019. Noteworthy is the Land Fund, the volume of which grew by 72% in the last 12 months compared to the previous year. Third, we have started a number of new initiatives. Among them is ALTUM's involvement in the Three Seas Initiatives Investment Fund, a new additional financial instrument for financing regional infrastructure projects. The creation of the ALTUM Capital Fund is to be singled out as well, which is a special instrument established together with the private sector to support large companies that under the Covid-19 impact are ready to alter their current operations through changing the business model, adapting product development, introducing new technologies and entering new export markets. The year 2020 was a year of rapid growth for ALTUM, and we are prepared to continue performing our complementary role in the financing market in 2021, supporting both those who need short-term aid and those who plan meaningful long-term investments, but for some reason do not qualify for bank financing. The financial result achieved is lower than it was forecast before the virus pandemic, but at the same time it corresponds to the current situation. Considering the circumstances of the crisis, when assessing the creditworthiness of companies, a grace period has been granted to part of the clients. Following the International Financial Reporting Standards, this has resulted in a prudent allowance policy for both this initiative and provisions for new business, which reflects in a roughly twofold decrease in profits.”
JSC Development Finance Institution Altum is a Latvia state-owned company that ensures access of the enterprises and households to the financial resources by means of support financial instruments - loans, guarantees, investments in venture capital funds - in the areas defined as important and to be supported by the state, thus developing the national economy and enhancing mobilization of the private capital and financial resources. On 25 March 2019 Moody’s Investors Service (Moody’s) reconfirmed Altum’s Baa1 long-term issuer rating, with outlook stable. The baseline credit assessment (BCA) was upgraded to investment grade rating baa3. The assigned Moody’s rating of Altum is one of the highest credit ratings assigned to corporate entities in Latvia. On 24 October 2017 the bonds issued by Altum were listed on a regulated market – Baltic Bond List of Nasdaq Riga.
AS Attīstības finanšu institūcija Altum Investors Relationships Division
Tel.: +371 67774023, +371 26165699