Signet Bank successfully placed DelfinGroup bonds in amount of EUR 3.5 million

The subscription for the bond issue of DelfinGroup arranged by Signet Bank was successfully completed.

Through the issuance of bonds, DelfinGroup raised financing amounting to EUR 3,500,000. The annual coupon rate for these bonds is 12%, with coupon payment once a month and the maturity date of November 25, 2022.

The bonds of DelfinGroup were allocated to Signet Bank clients and institutional investors as a private offering with a minimum investment amount of EUR 10,000.

DelfinGroup, the owner of the Banknote brand, is a licensed consumer lending company founded in 2009. It operates the pawnshop chain of 87 branches in 38 cities and urban areas of Latvia. The company is also represented in the digital environment by providing remote services – in the field of consumer loans and online shopping.

We had been expecting high demand for our securities in the current issue, but the fact that demand exceeded supply came as a pleasant surprise to me. We have been continuously implementing changes aimed at improving our business model, strengthening our balance sheet and developing corporate governance. Obviously, investors appreciate it. I am proud of the achievements of our team.”

Agris Evertovskis, CEO at DelfinGroup

Importantly, this bond issue affirms the potential to reduce financial costs. Raising capital allowed us to attract new investors and provide an adequate proportion of corporate bonds to the debt originating from the P2P lending platform. We highly appreciate the professionalism of the team at Signet Bank in arranging the bond issue and attracting investors.”

Kristaps Bergmanis, CFO at DelfinGroup

We are pleased with the result achieved – the demand for DelfinGroup bonds among our clients has exceeded the proposed issue volume. We are grateful to both DelfinGroup and the investors for their interest and trust. 

Although the Latvian bond market is currently underdeveloped, it is a widely used alternative source of attracting financial resources worldwide. Also, for many companies in Latvia, including small and medium-sized ones, the issue of bonds is a very good alternative to attract financing, especially now, when there is much debate about the availability of bank loans.”

Roberts Idelsons, CEO at Signet Bank

About bonds

Bond issuance is globally used as an alternative form of debt financing and offers several advantages to the issuer. These include the possibility to diversify funding sources and raise large amounts of financing, flexibility in terms of transaction structure, optimisation of cash flows and promoting the issuer’s recognition in the market. Thus, bond issuance is often a financially more attractive solution than other types of borrowing. Signet Bank offers a full range of services for successful issuance of debt securities.