Consilium Optimum successfully issues EUR 3 million bonds
The telecommunications company UAB Consilium optimum, known to customers under the brand Fastlink, has issued a €3 million asset-backed bond with an annual interest rate of 9% (ISIN code: LT0000411266). Bond settlement date is the 20th of December, 2024.
The bonds are secured by a first-priority pledge on the company’s asset portfolio, with the issuer pledging receivables from signed client contracts to investors. Additionally, this is the first bond issuance in Lithuania to receive a state-backed ILTE guarantee, covering 50% of the bond’s nominal value, or €1.5 million.
The bonds have a maturity of three years and will be listed on the First North (Nasdaq Vilnius) bond market within six months.
In addition to Lithuanian investors, investors from Estonia and Latvia actively participated in the offering. The demand for the issuance reached €6.253 million, more than double the supply.
Earlier in May 2024, a €5 million three-year bond issuance with an annual yield of 12% saw demand exceed supply by 1.3 times.
“The funds raised through this newly issued bond will be used for expanding the company’s business segments, improving systems, and developing new services. The bonds are planned to be repaid using bank refinancing and operating cash flows. In the first nine months of 2024, we achieved exceptional financial results compared to the first nine months of 2023 – revenue grew by 41%, and EBITDA increased by almost 66%. Our well-established business model, stable revenue streams, continuously growing customer base, and the state-backed ILTE guarantee gave investors the confidence to actively participate in the offering” said the company’s founder and CEO, Vitalijus Romualdas Andrijauskas.
“During both the initial issuance in May 2024 and this offering, demand significantly exceeded supply. Although Lithuanian investors generally find bonds backed by real estate more attractive and easier to understand, in the case of Consilium optimum, strong financial results, a clear growth strategy, the issuer’s operations in the relatively non-cyclical telecommunications sector, and the ILTE guarantee were all aspects positively evaluated by investors seeking diversification opportunities” said Mykantas Urba, Head of Corporate Finance at Orion Securities.
The bond offering and distribution were organized by Orion Securities.
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