UAB Modus Grupė successfully distributed a EUR 8 million bond issue: the demand was 2.5 times higher

UAB Modus Grupė, which operates in mobility services, the auto business, investment funds, and other businesses, has completed a public bond issue and raised EUR 8 million in less than a week. More than 400 investors from Lithuania have purchased the bonds.

The EUR 8 million bond was scheduled to be distributed on November 17–29, but due to strong investor interest, this amount was reached a week earlier, bringing the total value of investment applications to almost EUR 20 million.

"Investor interest in the bonds shows that the market values and has confidence in the strategy and resilience of our Group's businesses in different economic phases. The work done in the previous two bond issues has contributed to this successful outcome, building investor confidence," says Ainė Martinkėnaitė-Martyniuk, the Chairman of the Board of UAB Modus Grupė.

The funds will refinance up to EUR 8 million of bonds issued three years ago. The debt securities with a maturity of up to 2 years are being offered to private and institutional investors. Interest on them will be paid twice a year at the annual rate of 6-month EURIBOR + 7%. The bonds have a nominal value of EUR 100 each. MG NL Holding B.V., the parent company of UAB Modus Grupė, will provide surety for the bonds.

"The distribution of Modus Grupė bonds attracted a record level of investor interest, which is a rare achievement for an issuer in the Lithuanian market. The company is a good example of how a systematic approach to capital markets and a sustainable approach to financial management can successfully and quickly provide an alternative means of financing. It is a pleasure to contribute to the distribution of bonds, which not only strengthens the Lithuanian capital markets, engages investors, but also raises the standard for other market participants," says Eglė Džiugytė, Head of the Financial Markets Department at Šiaulių bankas.

As with earlier bond issues, an application will be made to list the new UAB Modus Grupė bonds issue on the First North alternative securities market operated by Nasdaq Vilnius. AB Šiaulių bankas distributed the bonds. UAB Modus Grupė has selected the law firm TGS Baltic as its legal and certified advisor.

UAB Modus Grupė placed its first EUR 5 million public bond issue in 2017 and a second EUR 8 million public bond issue in 2020.