The agricultural cooperative Latraps has raised €8 million in a public bond offer at a fixed interest rate of 7.5%. Total demand for the bonds was more than EUR 12 million, exceeding the issue target by 50%, the company said on December 10 .
Latraps’ bonds have attracted interest from both private and institutional investors. More than 300 private and institutional investors participated in the bond offer . Latvian investors accounted for more than 90% of the total demand.
“The results of this, our first public bond offering, reflect the public’s interest in participating in the development of the agricultural sector and strengthening Latvia’s name on the world economic map, for which I am grateful to every investor,” said Roberts Strīpnieks, Chairman of the Board of Latraps.
The capital raised in the bond issue is planned to be used for the implementation of the largest pea protein isolate production plant in Northern Europe “ASNS Ingredient” project in Latvia.
“I am pleased that the goal of this issue is both ambitious and tangible for all of us – to build the largest pea protein isolate production facility in Northern Europe, ASNS Ingredient, where the first construction works are scheduled to start this month,” said Strīpnieks.
Following the issue of the bonds, Latraps will apply to Nasdaq Riga for admission of the bonds to the Nasdaq Baltic First North alternative market.
The bonds will be settled on December 12 2024. The bondholders will receive quarterly coupon (interest) payments, with the first coupon payment already on March 31 2025.
The organizer of the bond issue is AS “Signet Bank”, while legal advice is provided by law firm “TGS Baltic”.
