BlueOrange facilitates the entry of a production company to the stock-exchange
November 05, 2019
BlueOrange Bank has provided a long-term loan of €4 million and financing of current assets in the amount of nearly €4 million to AS Sakret Holdings — one of the leading construction mixture producers in the Baltic States. The support provided by the bank will allow the company to successfully re-finance the existing liabilities, as well as provide for current assets in order to develop and successfully continue increasing sales of construction mixture in the Baltic States and developing export mainly to Scandinavian countries.
In addition to the funding, BlueOrange arranged for the issue of Sakret's secured bonds in the amount of of €3,8 million. The bonds will be listed on the Nasdaq Riga First North alternative market at the beginning of 2020.
“Sakret is an excellent example of the Bank being able to successfully combine classic lending with alternative funding though the issue of corporate bonds,” emphasises Edmunds Antufjevs, the Head of Investment Origination at BlueOrange. He welcomes the fact that BlueOrange has facilitated the entry of a new local-capital production company into the stock exchange.
“The decision to enter the capital market is a sign of Sakret's maturity. We have decided not to stop at what has been achieved so far and to continue pursuing considerate and balanced growth in the markets of the Baltic States,” adds Andris Vanags, Chairman of the Council at Sakret. Given the company's stability, visibility and competitiveness, Sakret's chief executive is confident that the interest in bonds on the investor side will continue also on the secondary market following their inclusion in Nasdaq Riga.
Valerija Liege, the Partner at Oaklins M&A Baltics, stresses: “Bond issuance is a convenient and increasingly accessible way for companies to raise funds. I am pleased that BlueOrange Bank has recognised the sustainable performance and financial results of Sakret's so far. Reinvestment of existing liabilities, financing of current assets and planned bond issuance will allow the company to set new targets and continue to grow.”
AS Sakret Holdings, with four factories in Latvia, Lithuania and Estonia, is one of the leading manufacturers of construction mixtures in the Baltic States. 100% of the company's shares are held by citizens of Latvia. The companies of Sakret Holdings have received awards in the Baltic States and Scandinavia for the production and export of innovative materials. The key to successful operations of the business lies in coherent and professional team, customer service, personnel training and close cooperation with partners.