The bond issue attracted solid demand from both institutional and private investors, with total demand exceeding EUR 23.7 million. More than 80 investors participated in the offering, with institutional and private investors accounting for 51% and 49% of the demand, respectively, showing continued investor trust in ELKO Grupa's business.
During the offering, Akciju Sabiedriba ELKO Grupa offered its existing investors of bonds maturing on 12 February 2026 (ISIN LV0000870079) to exchange their bonds for the new bonds. Of the total amount raised, EUR 11,423,000 was contributed by existing investors who opted to participate in the exchange offer. As a result, the volume of bond issue (ISIN LV0000870079) will be reduced to EUR 8,577,000 with the respective bonds set to be redeemed upon maturity on 12 February 2026.
Investors who participated in the exchange offer will receive a 0.75% exchange premium together with the accrued interest on the exchanged bonds within 10 business days from the issue date, while investors who did not participate will have their bonds redeemed at maturity.
Svens Dinsdorfs, Member of the Management Board and CEO of ELKO Grupa: “We greatly appreciate the confidence shown by both existing and new investors. The solid demand for this issuance reflects the investor’s trust in our performance and clear strategic direction. We remain fully committed to implementing the Group’s growth strategy.”
Edmunds Antufjevs, Head of Investment Banking at Signet Bank AS: “This was the fourth bond issue by ELKO Grupa, and the issue generated strong interest from both institutional and private investors, reflecting confidence in the Group’s operational and financial performance, experienced management team, and well-defined growth strategy. More than 55% of existing bondholders decided to exchange their current bonds for the new issue, representing a strong outcome.”
The new bonds have a 4-year maturity and an annual coupon rate of 7.25%. The issue date is 23 December 2025, and the Company intends to apply for listing on Nasdaq Riga First North within 3 months after the issue date.
Signet Bank AS acted as the arranger and lead manager of the exchange offer and new notes issue.
About ELKO Grupa
ELKO Grupa is one of the region's largest distributors of IT and consumer electronics products and solutions, representing 350 world-leading manufacturers. The company provides a wide range of products and services to more than 12,000 retailers, local computer manufacturers, system integrators and enterprises within various sectors in 13 countries in Central Eastern Europe and the Nordics. Established in 1993, Latvia. www.elkogroup.com