Latvian company LINEN issues bonds worth EUR 2 million

A Latvian company LINEN (SIA “L.J.Linen”) that provides agri-product supply chains tailored to customer needs and has been doing stable business not only in Europe, but also in Asia, Africa and South America for many years, and currently operates in 54 countries around the world, has made its debut in the capital market, issuing bonds worth EUR 2 million.

Secured bonds with a two-year maturity were offered to both private and institutional investors in the form of a private placement. The bonds are planned to be included in the First North alternative market of Nasdaq Riga in the first half of next year. The funds raised as a result of the bond issue will be used to finance current assets, develop the company and strengthen its market position in the regions of Europe and Asia.

The company’s growth is based on both a successful business model and risk diversification and favourable market conditions. For example, our products and properly selected sales markets are able to replace many of those products that have been exported from Ukraine and Russia so far. At the same time, development is also facilitated by the fact that the food sector is one of the few in which consumption is constantly growing. The company can boast not only an almost global infrastructure, but also physical supply chains in markets that have traditionally been less explored. Thus, the company’s unique experience on a global scale provides excellent development potential using the existing forms of cooperation and partnerships.

Jānis Kuļikovskis, the founder and owner of the company Linen

SIA “L.J.Linen” (LINEN) bond issue was arranged in cooperation with Signet Bank AS – the bank, which provides support to leading Baltic companies in raising funds in the capital market.

We congratulate the company on its successful debut on the bond market and hope that the additional funding raised will enable the company to successfully scale up its business and implement its growth plans. Investor interest in this bond issue was high, and we appreciate the desire of local investors to support the growth plans of ambitious Latvian companies.

Kristiāna Janvare, Head of Investment Division at Signet Bank

About LINEN

LINEN’s main activity is the global trade in agricultural products ingredients – animal feeds, pet food, biofuels, cosmetics, and fertilizers. In the field of trade in raw materials of animal origin, LINEN is one of the leading companies in the European Union and consistently ranks among the five largest companies in the European Union that provide exports of this type of raw materials in the EU. Last year the turnover of SIA “L.J.Linen” was EUR 28 million, which is 55% more than a year earlier, whereas the turnover of the entire LINEN Group, which includes 14 companies worldwide, amounted to EUR 45 million. This year, the Group plans to almost double it, reaching a turnover of EUR 60-70 million. In the next few years, LINEN plans to strengthen and expand its position in existing markets in Europe, Asia and Africa, as well as to explore new markets, for example, by expanding operations in South America, while at the same time expanding its product range with plant-based raw materials.

Signet Bank was founded in 1991 and is one of the first banks of independent Latvia. The Bank’s strategy focuses on financing local entrepreneurs and their businesses, as well as on capital management. Since the beginning of 2021, Signet Bank has provided clients with financing in the form of loans and bonds in the amount of almost 500 million euros. Signet Bank’s shareholders are nine Latvian and international private investors, the largest of which are Signet Acquisition III (25%), where the only shareholder is the US investor Alexander Solovey; AS RIT Group (19.50%) – a Latvian company owned by the Rapoport family, and SIA Reglink (15.93% ), whose founder Irīna Pīgozne is a banking professional.