Lithuanian retail giant Maxima Grupė has announced that it has issued €240 million in five-year senior unsecured notes under its EMTN (Euro Medium Term Note) programme.
The notes were subscribed by institutional investors representing the Baltic states, Nordics, United Kingdom, and Poland, the company added.
Investors demonstrated interest and support for the securities and notes placed at 6.25 interest rate (6.5 yields) despite challenging market conditions.
The notes will be listed in Euronext Dublin and the operators of the regulated market of Nasdaq Vilnius.
'A Strong Message Of Confidence'
Mantas Kuncaitis, the CEO of Maxima Grupė, UAB, commented, "Last week showed significant market interest towards our business, which led us to finish the project, having more than twenty investors on board, and more than half of the amount coming internationally.
“At the same time, this is a strong message of confidence in the security and prospects of the entire region, in light of the war that started in Ukraine on 24 February. Having strong partners, such as European Bank for Reconstruction and Development, Luminor, PKO BP, SEB, Swedbank and others, encourages us to keep up with our current direction, and to improve us even further.”
Citi, J.P. Morgan, Luminor and MUFG acted as joint bookrunners of the offering.
Clifford Chance LLP and Ellex Valiūnas were legal advisors of Maxima Grupė, while Linklaters LLP and TGS Baltic were legal advisors of the banks.
'A Very Challenging Backdrop'
Paulius Žurauskas, the head of markets at Luminor group, stated, “European credit markets are facing a very challenging backdrop while adapting to new interest rate environment caused by a radical change of monetary policy. In addition to this, top-grade issuers from the Central and Eastern European region are facing challenges attracting international investors due to the still heavy geopolitical situation.
“Knowing the environment and circumstances, we can take pride in the result," Žurauskas added.