Signet Bank raises €38,3 million in funding for Summus Capital through bond issuance

The Baltic real estate investment holding company Summus Capital has raised the full targeted investment amount of EUR 30 million in a public bond offering, while the total demand for the bonds reached EUR 38.3 million, exceeding the offering by 27.7%.

A total of 977 investors participated in the public offering. Private investors from Estonia, Latvia, and Lithuania subscribed for EUR 25.7 million worth of bonds, making up 67% of total demand, while institutional investors subscribed for EUR 12.6 million, accounting for the remaining 33%.

Estonian investors accounted for EUR 17.8 million, or 47% of the total demand; Latvian investors – EUR 7.5 million (19%); and Lithuanian investors – EUR 13 million (34%).

Given the oversubscription, Summus Capital’s management board has decided to aggregate all subscription orders from a single investor. It has been decided to fully allocate all investor orders up to and including EUR 100,000. For orders exceeding EUR 100,000, the first EUR 100,000 will be fully allocated, and 67% of the remaining amount will be fulfilled.

Settlement and bond transfers to investors’ securities or investment accounts are planned for June 30, 2025.

Trading of the bonds on the Nasdaq Tallinn stock exchange is expected to commence around July 1, 2025, the company reports.

In the public offering, Summus Capital offered up to 30,000 bonds to private and institutional investors in Estonia, Latvia, and Lithuania. The nominal value of each bond is EUR 1,000. The maturity date of the bonds is June 30, 2029, and the fixed annual interest rate is 8%.

The bond issuance was arranged by Signet Bank, LHV, and Orion Securities, with legal advisory provided by Sorainen.

Summus Capital Management Board Member Āvo Koppels previously explained that the company’s business model is based on a diversified and resilient portfolio including retail, office, logistics, and, since 2021, medical sector real estate. In addition to the core markets in the Baltics, in late 2024, Summus Capital began international expansion, acquiring office buildings in Warsaw and Łódź, Poland.

Summus Capital’s total asset portfolio now exceeds EUR 500 million.

In previous two issuances, Summus Capital has issued bonds totaling EUR 25 million.

Summus Capital’s profit in the first quarter of this year was EUR 4.2 million, the same level as in Q1 last year.

In 2024, Summus Capital’s turnover reached EUR 41.325 million, which is 5.8% more than in 2023, while the company’s profit increased by 48.4% to EUR 12.556 million.

Summus Capital is an Estonia-based real estate investment holding group owning a portfolio of 16 properties across the three Baltic countries and Poland, including buildings in the retail, office, logistics, and medical sectors, with over 275,000 square meters of leasable space. The holding company makes direct real estate investments through special purpose vehicles established in each respective country.

In Estonia, Summus Capital owns the Veerenni 1 and Veerenni 2 medical centers, the de la Gardie and Auriga shopping centers, the Punane 56 business center, and a portfolio of warehouses. In Latvia, Summus Capital owns the Riga Plaza, Damme, and Depo Imanta DIY shopping centers. The Lithuanian portfolio includes the BOD Group high-tech center, the Nordika shopping center, and the Park Town office buildings. In Poland, the portfolio includes the Lakeside office building in Warsaw and the React office building in Łódź.