Attīstības finanšu institūcija Altum
Inside information

JSC Development Finance Institution Altum operational volumes for three months period ending 31 March 2024

Inside information, 2024-05-15 16:04 CEST -- In the 3 months of 2024, compared to the corresponding period in 2023, both in terms of volume and the number of supported projects, the volume of new transactions has increased, as well as an increase in the portfolio of support instruments compared to the end of 2023.

Trends characterizing the reporting period:

• Lending activity in the first quarter of the year has significantly increased YoY basis - the volume of new transactions increased by 51%, while the number of supported projects increased by 43%. Corporates’ demand for the financing was mainly triggered by interest rate reliefs introduced by ALTUM.
• In the 1st quarter of 2024, there was a high demand for loans to companies with ticket size up to EUR 100 thousand, which ALTUM implemented as of beginning of the year in order to promote lending in the regions, thus with significantly reduced collateral requirements. Within three months, projects for a total of EUR 8 million were approved, the average amount of the project is approximately EUR 35 thousand.
• Lending activity in the Agriculture segment increased significantly, where demand was boosted by the reduced rate introduced by ALTUM for working capital loans to farmers.
• During the reporting period, the demand for sales and leaseback transactions of the Land Fund managed by ALTUM has increased.

For more information - see the attachment.

JSC Development Finance Institution Altum is a Latvian state-owned company providing enterprises and households access to 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 16 December 2022 Moody’s Investors Service (Moody’s) affirmed the Company’s Baa1 long-term issuer rating, with outlook stable, same as affirmed on 25 March 2019. The baseline credit assessment (BCA) is also affirmed at Baa3, together with the short-term issuer rating at P-2. 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.

         Laura Lapkovska
         AS Attīstības finanšu institūcija Altum Investors Relationships Division
         Tel.: +371 67774023, +371 26165699
         E-mail: Laura.Lapkovska@altum.lv