September 15 UAB Valstybės investicinis kapitalas (VIK) has been very successful in distributing 4 million LTL for 4 years. an inaugural issue of government-guaranteed bonds worth EUR. The international credit rating agency Fitch Ratings has a total of 400 million. gave the euro bond program an “A” rating. VIK will invest in stages in the Business Support Fund managed by the State Investment Management Agency (VIVA) as needed.
The bonds distributed by VIK will be listed on the Nasdaq Vilnius Stock Exchange. In addition, the bonds issued may participate in the monetary policy operations of the European Central Bank.
“Professional investors operating in the Scandinavian market appreciated the entire program, the state guarantee and the A rating, offering a very attractive 0.045%. yield. The issue received a lot of interest – demand exceeded supply 8 times. In total, the issue received 21 investors, more than a third of whom are from foreign markets, and the minimum planned investment was EUR 100,000, ”said Robertas Vyšniauskas, Head of VIK.
According to him, the high interest of investors and attractive interest rates confirm that the market trusts the sustainable investment model developed by the state and the investment strategy of the Fund.
“The business support fund has already made decisions to invest 163 million euros. Eur, of which we already have liabilities for almost 100 mln. Therefore, continuous and timely investment of funds in the Fund will allow to continue to provide financing to companies on attractive terms and to ensure that state aid reaches business on time and to the extent necessary for business, ”commented VIVA CEO Dainius Vilčinskas.
According to D. Vilčinskas, autumn did not bring more security to business. Businesses are facing rising commodity prices, disrupted supply chains due to the pandemic, insufficient bank financing, and the stalling of necessary investments – these and other pandemic challenges are being addressed by the Business Support Fund. The fund lends to companies by redeeming bonds, providing loans or investing in hybrid instruments.
“This issue is a convenient and well-structured tool for the State Investment Capital, which will allow attracted funds to invest in the Business Support Fund and help finance businesses that have felt the need for liquidity during the pandemic, are preparing for economic recovery and planning further development. We are proud to contribute to the extremely successful distribution of the first bond issue and look forward to the company’s new marches into the capital market, “said Paulius Žurauskas, Director of Luminor’s Markets Department.