2024: A Record Year for Bond Issuances in Latvia and the Baltics

The year 2024 has witnessed an unprecedented increase in bond issuance activity across both Latvia and the Baltics. According to data from Signet Bank, Latvia saw 21 new bond issuances, raising a total of €691 million. Meanwhile, the Baltic region as a whole recorded 105 new issuances, surpassing €3 billion in total funding for the first time. Compared to 2023, Latvia’s bond market more than doubled in issuance volume, with the number of transactions increasing by 11%. In the Baltics, the total amount of capital raised grew by 56%, while the number of transactions rose by 14%.

Several large-scale bond issuances contributed to this impressive growth, including those from Luminor, Eesti Energia, LHV, Šiauliu Bankas, and airBaltic. Notably, airBaltic’s €380 million bond issuance became the largest corporate bond issue by a Latvian company to date, accounting for more than half of the total capital raised by Latvian issuers.

“Market conditions in 2024 were highly favorable for bond issuances, attracting strong interest from both investors and issuers. Investor demand was driven by relatively high interest rates and bond availability, while companies were increasingly turning to bond financing due to rising financial literacy, a deeper understanding of bond market advantages, limited bank financing options, gradually declining interest rates, and the overall success of past bond issuances – most of which were oversubscribed last year,” explains Kristiāna Janvare, Head of Investment Banking at Signet Bank.

Refinancing and New Issuances

Of the 21 bond issuances in Latvia, 16 were arranged by Signet Bank, representing a significant share of the overall market activity. Refinancing transactions accounted for 69% of the total, while new bond issuances made up 31%. Furthermore, 92% of transactions were executed with a fixed interest rate. “Companies that have already ventured into the bond market tend to remain active participants, continuing to leverage this financing instrument. As a result, many existing bonds are refinanced with new issuances. We expect this trend to continue in 2025, with a significant portion of the market comprised of bond refinancing transactions,” notes K. Janvare.

Emerging Trends: Public Offerings and Retail Investor Participation

2024 also marked a rising trend of public bond offerings, making bonds more accessible to a wider audience, including retail investors. This shift was driven by increasing retail investor interest and regulatory adjustments that allowed companies to raise up to €8 million using an Information Document, eliminating the need for a full prospectus. Lithuanian companies were particularly active in taking advantage of this opportunity.

Investor interest in public bond offerings was further stimulated by low minimum investment thresholds—often as low as €100—and active marketing and PR campaigns by the issuing companies. While Lithuanian firms led the way, several well-known Latvian companies, including Storent Holding, BluOr Bank, Grenardi Group, DelfinGroup, Longo Group, and LATRAPS, also successfully completed public offerings, demonstrating the strong demand for corporate bonds.

Further Growth Potential “We anticipate continued strong interest in bonds from both investors and issuers in 2025,” emphasizes K. Janvare. Falling interest rates are making bond financing more attractive for companies by reducing capital-raising costs. At the same time, absolute interest rate levels remain sufficiently high to maintain strong investor demand.

“Despite growing issuance activity, bonds remain a relatively untapped financing source among companies—only around 20 Latvian businesses issue bonds each year,” K. Janvare explains. “On the other hand, investors continue to hold substantial liquid assets, which could potentially be allocated to higher-yield investments. As bond accessibility and public awareness increase, we see tremendous growth potential for this financing instrument.”