Estonian mortgage loan provider Hüpoteeklaen OÜ issued in January 5 year bonds with fixed coupon rate of 8%. The size of the bond tranche was 3 million euros. Bonds are secured with the pledges on mortgages and claims.
The goal of the issue was to finance the further growth of the credit portfolio. In 2015 Hüpoteeklaen is planning to raise total 8 million euros from the bond market. The aim is to list the bonds on the Baltic Bond List of NASDAQ Baltic stock exchange.
The bonds were subscribed by Baltic institutional and private investors. The transaction was advised by Redgate Capital as the financial advisor and Law Firm SORAINEN as the legal advisor; Law Firm Lawin is acting as the collateral agent for Hüpoteeklaen bonds.
Redgate Capital’s Senior Partner Mr. Aare Tammemäe noted: „It is one of the longest maturity bonds issued in the past years in Estonia. This shows that local investors have confidence in Estonian economy and the issuer”.
„For us this is the second successful bond issue. We aim to list our bonds on NASDAQ Baltic Exchange’s bond list to attract more institutional investors. Our aim is to be transparent and reliable partners for our investors. This year we aim to raise total 8 million euros in form of bonds,“ said Mr. Toomas Paju, the CEO of Hüpoteeklaen OÜ.
Hüpoteeklaen OÜ was founded in 2009 and today it is the Estonian largest non-bank mortgage loan provider. The company employs 11 people, who serve more than 1200 clients. In its six years of operation the company has managed to grow its credit portfolio to 20 million euros. Company’s unaudited financial results in 2014 show interest income of 2.8 million euros and net profit of 0.9 million euros.
Redgate Capital is an investment management and investment banking services group, founded in 2008 and offering financial advisory and investment management services in the Baltics. Redgate has advised several companies with bond issues.
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