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Results of the oversubscribed bond issue of Baltic Horizon Fund Meraki SPV

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Baltic Horizon Fund SPV, BH Meraki UAB has completed an oversubscribed private placement of 18 months secured bonds of EUR 4 million. Investors subscribed bonds for a total of EUR 11.15 million which means that the issue volume was oversubscribed 2.78 times.

During the primary placement, first tranche contributing to half of the maximum aggregate value of EUR 8 million was issued. The issue price for the offering was equal to nominal value and bonds bear a fixed rate coupon of 5% to be paid semi-annually. It is expected that remaining part will be issued in one or more placements later this year. The transaction took place under private placement regime and was mainly subscribed by institutional investors in Estonia, Latvia and Lithuania. The issuer will apply for the admission to trading of the bonds on Nasdaq First North.

The bonds are secured with a 1st rank mortgage on the properties located at Eitminų str. 3 and Ukmergės str. 308, Vilnius, Lithuania and with a surety granted by the Baltic Horizon Fund to secure the payment obligations under the bonds.

The net proceeds from the issuance of the bonds will be used for financing the construction of the Meraki office building. Bonds are issued in tranches to match the financing and investment cash flows for the project.

Lead managers for the offering were Redgate Capital AS and Luminor Bank AS Lithuanian branch. “Order book was strong in all three Baltic countries, confirming strong demand for local high-quality real estate issuers. Baltic Horizon is excellent example, how local market players can utilize debt capital market as attractive and flexible source of financing” stated Kristjan Petjärv, partner of Redgate Capital.

“We see increasing demand from Baltic investors for high quality fixed income assets such as BH Meraki UAB secured bond issue. In this private placement offering, we have experienced a very strong orderbook with high quality investor names which allowed the issuer to raise funds at attractive terms.” affirmed Silver Kalmus, Bond Market project manager of Luminor Bank AS.

“We are pleased to see such high interest from both institutional and private investors on the Meraki bond and to note that local debt capital markets continue to be very active. Bonds has proven to be a viable alternative to bank financing for the project,” commented Tarmo Karotam, fund manager of Baltic Horizon Fund.

For additional information please contact:

Tarmo Karotam
Baltic Horizon Fund manager
E-mail tarmo.karotam@nh-cap.com
www.baltichorizon.com

Baltic Horizon Fund is a registered contractual public closed-end real estate fund managed by Alternative Investment Fund Manager license holder Northern Horizon Capital AS.

Distribution: GlobeNewswire, Nasdaq Tallinn, Nasdaq Stockholm, www.baltichorizon.com