Attīstības finanšu institūcija Altum
Inside information

JSC Development Finance Institution Altum operational volumes for nine months period ending 30 September 2024

In the 9 months of 2024, there has been a steady increase in the portfolio of support instruments.  In total, within the 9 months of 2024, the new transactions of ALTUM support instruments amounted to 299 million euros, financing 5 431 new projects. In the 9 months of 2024, compared to the corresponding period of 2023, the new transactions have increased in terms of volume (+97 million euros, +48%) and number of supported projects (+1045 transactions, +24%).

Trends characterizing the reporting period:

• The 9 months of 2024 demonstrate an uptick in lending activity compared to the corresponding period of 2023. The 9-month increase in the volume of new transactions is brought about by the upsurge in disbursed amounts under the European Recovery Fund’s programs and Large Investment Loan Program offering a capital rebate – the loans disbursed in 9 months amount to 45 million euros (+ 39 million euros).
• In the first half-year of 2024, high demand was also recorded in the agricultural segment, however, the growth rate plummeted in the 3^rd quarter due to the seasonality of agricultural work. All in all, 2024 has not been as challenging for farmers as the previous year.
• The demand remains stable for loans to companies with ticket size up to EUR 100 thousand with decreased security requirements, which ALTUM implemented as of beginning of the year to promote lending in the regions. In 9 months, 690 loan applications totaling 23.7 million euros have been approved.
• The guarantee portfolio has slightly expanded in the 9-month period (+21 million euros, +4%), although the growth rate in the 3^rd quarter slowed down compared to the 2^nd quarter. The portfolio increase has mainly occurred in the segment of guarantees for individuals, attaining 10% growth in 9 months. The 3^rd quarter records activity in the housing guarantee programs, given the fact that demand for mortgage lending services is gaining strength due to the actual cut in Euribor rates. Similarly, the increase of the guarantee portfolio remains stable in view of the demand for the European Recovery Fund’s guarantees for energy-efficiency projects of multi-apartment buildings. However, the volumes of new guarantees in the SMEs and Midcaps segment equal those of the 9 months of 2023 due to the still relatively sluggish bank lending rate to the SMEs segment in Latvia. The volumes of new guarantees in the SMEs and Midcaps segment in 9 month amount to 49 million euros (+ 3 million euros).

ALTUM is a Latvian state-owned company providing enterprises and households access to financial resources by means of support financial instruments - loans, guarantees, investments in venture capital funds - in the areas defined as important and to be supported by the state, thus developing the national economy, and enhancing mobilization of the private capital and financial resources. On 2 February 2024 Moody’s Investors Service (Moody’s) affirmed ALTUM’s Baa1 long-term issuer rating, with outlook stable, following update of rating methodology. The rating and the short-term issuer rating at P-2, same as affirmed on 16 December 2022. The assigned Moody’s rating of ALTUM is one of the highest credit ratings assigned to corporate entities in Latvia. On 24 October 2017 the bonds issued by ALTUM were listed on a regulated market – Baltic Bond List of Nasdaq Riga.

         Laura Lapkovska
         AS Attīstības finanšu institūcija Altum Investors Relationships Division
         Tel.: +371 67774023, +371 26165699
         E-mail: Laura.Lapkovska@altum.lv