Not only large companies like Tallink Group and Estonian Energy ask for money from investors through bonds. In the beginning of May, H\u00fcpoteeklaen O\u00dc, which lends money to its clients, successfully sold bonds in the total amount of 4 million euros after it was abandoned by the banks. One of the 30 investors was also one Estonian pension fund.<\/p>\n
Toomas Paju, the owner of H\u00fcpoteeklaen O\u00dc that operates since 2009, was satisfied with the outcome of emission despite the fact that arranging the emission was rather expensive. \u201cEven one pension fund bought bonds,\u201d was Paju positively surprised. One of the advantages of issuing bonds is that you can sell bonds by parts. Altogether, almost 30 investors bought company\u2019s bonds.<\/p>\n
ERGO was the pension fund that supported H\u00fcpoteeklaen O\u00dc. \u201cAs bonds are secured by the loans, which in turn are doubly secured by real estate, and as the investment is rather short-term, I am sure that the risk level of the investment is not high for a pension funds,\u201d explained the investment into a small loan company ERGO Pension Fund\u2019s Manager Madis Reinum\u00e4gi.<\/p>\n
When in 2011 H\u00fcpoteeklaen O\u00dc had to engage the money with the interest rate of 6-24% according to the annual report, then this loan from investors was with 8%, and Paju is satisfied with it.<\/p>\n
The proceeds will be used for refinancing the existing loans of the company with 10 million euro loan portfolio.<\/p>\n
\u201cWe invented a bicycle with these bonds,\u201d commented Paju, who previously worked in Nordea bank for 12 years. Namely, the bonds are secured by the real estate that is the collateral for the loans given out to the clients by H\u00fcpoteeklaen O\u00dc.<\/p>\n
Aare Tammem\u00e4e, the board member of Redgate Capital which was the financial advisor for the emission, said that Estonian investors believe more in the bonds, but emphasized that bonds must be definitely secured. \u201cI believe that the first birds will give a push, and the companies will issue bonds and they will be bought more once again,\u201d added Tammem\u00e4e.<\/p>\n