AS Grenardi Group bonds with a 10% interest are open for subscription today
AS Grenardi Group, the Baltic's most rapidly growing jewellery retailer with the largest store (GRENARDI and GIVEN store) network in the region, announces a public bond offering of 12 million euros in all three Baltic states with a fixed interest rate of 10% and a maturity of three years. The subscription period will last until 15 April and is open to both professional and retail investors.
“In nearly 25 years, we have not only strengthened our leadership in the Baltics but also proven the resilience of the jewellery retail industry. The Group's success is based on a well thought-out concept, a wide range of jewellery – both global brands and self-made, unique private label brands. We serve as an example of how the innate love of aesthetics and beauty in Latvia can be turned into a successful business. Therefore, we are delighted that this bond issue will be made available to the wider public, allowing both professional and retail investors, including our clients, to participate in the Group's success story,” says Ģirts Rudzītis, the Chairman of the Management Board and the CEO of the AS Grenardi Group.
Proceeds from the bond issue will be directed towards refinancing the Group’s existing bonds, as well as financing further growth – expansion of its store network and assortment and financing of acquisition transactions.
“AS Grenardi Group bond issue, which is secured with pledge on the assets of Group subsidiaries – mainly gold jewellery, is one of the very few secured bond offerings available to Baltic retail investors. The issue will be addressed both to the Group’s existing and new investors, as existing investors will have the opportunity to exchange their bonds maturing in April 2024 for the new bonds, while new investors will be able to participate in the offering, starting with a minimum investment of only EUR 100,” says Kristiāna Janvare, the Managing Director of Investment Banking of AS Signet Bank.
Sustainable growth
The unaudited consolidated financial results show that the net turnover of AS Grenardi Group in 2023 reached 18 million euros, which is 40% more than in 2022. The increase in turnover was facilitated by the expansion of the retail network, the increase in sales in the existing store network and the acquisition of GRENARDI.
The group's EBITDA indicator (earnings before interest, taxes and amortisation payments) increased by 30% last year, reaching 2.9 million euros. The Group's adjusted pro-forma EBITDA, which also includes the results of the GRENARDI network for the full year 2023, was 3.7 million euros.
Secured bonds with an annual coupon rate of 10%
The bonds are issued in accordance with the Base Prospectus of AS Grenardi Group registered by the Bank of Latvia on 20 March 2024, which enables to raise up to EUR 17 million in total under bonds programme, whereas in the first tranche up to EUR 12 million.
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 120 000 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, and includes an exchange offer to investors of existing bonds maturing in April 2024. 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 additional level of comfort when making their investment.
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. Detailed terms of the loyalty programme will be published during the bond offering and will be available to interested parties in the "Investors" section of the Group's website.
Investment webinar
AS Grenardi Group will hold a webinar on 3 April at 15.00 EEST to potential investors to introduce the company's profile and the bond offering, as well address questions raised. To sign up for the webinar, please use the following link: https://nasdaq.zoom.us/webinar/register/WN_FYuYxpuuQIqBPuCF43zpYA.
Timetable of the offering
Start of the offering period 25 March 2024 at 10.00 EET
End of the offering period 15 April 2024 till 14.00 EEST
Announcement of the results 16 April 2024
Settlement 19 April 2024
After the issue date, the Group will apply to Nasdaq Riga for admitting the bonds to listing and trading on the regulated market – the Baltic Bond list.
About AS Grenardi Group:
AS Grenardi Group is the parent company of GIVEN and GRENARDI in the Baltics. As of December 31, 2023, AS Grenardi Group operates a total of 82 stores – of which 75 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).
Marta Andersone
CFO
info@grenardi.group
Tel.+371 67796000
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