Signet Bank advises ELKO on the inclusion and trading of bonds on the stock exchange

Signet Bank provides support for the placement of bonds of the Latvian wholesaler of IT products and consumer electronics, AS ELKO Grupa, on the Nasdaq Riga Baltic First North bond list.

ELKO’s listing and trading on the stock exchange is an excellent example of how local capital markets can successfully attract funding and continue to grow during the global pandemic. We are currently seeing that our other existing and potential clients – enterprises, can also use the opportunities provided by First North to raise capital in order to continue their business development.

Roberts Idelsons, CEO at Signet Bank

ELKO’s return to the stock exchange lists is an important event for the entire Latvian capital market. We hope that Baltic investors will seize the opportunity to buy bonds on the secondary market, while existing investors will gain market liquidity offered by the exchange if they need it.

Edmunds Antufjevs, Head of Corporate Finance at Signet Bank

Demand for IT and consumer electronics has skyrocketed under the impact of the pandemic. ELKO has completed the last year with record financial performance. The bond issue provided the necessary working capital to enable us to respond adequately to market demand, while overcoming the consequences of supply chain disruptions and rising logistics costs. We are pleased with the successful issue. This showed that there is a lot of private capital in the region, and that the funds are ready to invest in stable companies with the prospect of development. Interest in bonds to diversify the financing structure has deservedly increased. This is a great alternative to the financial instruments offered by banks.

Svens Dinsdorfs, CEO at ELKO Grupa

ELKO’s history of growth on the stock exchange began in 2008. With the inclusion of new bonds, ELKO perfectly shows that Latvian companies are capable of mobilising investment even in times of a pandemic. Hopefully, this example will also inspire other Latvian companies to choose the Baltic capital market in order to accelerate their development, increase competitiveness and promote their export capacity.

Daiga Auziņa-Melalksne, CEO at Nasdaq Riga

About ELKO

Founded in 1993, AS ELKO Grupa is the largest distributor of IT products, consumer electronics and solutions in the Baltics. ELKO represents over 400 IT manufacturers, offers a wide range of products and services to more than 10,000 retailers, local computer manufacturers, system integrators and companies from various industries in 11 European countries. The parent company of ELKO Grupa is located in Riga, Latvia. The turnover of ELKO Grupa in 2020 amounted to EUR 1.9 billion.

About Nasdaq

Nasdaq (Nasdaq: NDAQ) is a global technology company serving capital markets and other industries. Nasdaq’s diverse range of data, analytics, software, and services enables customers to optimize and implement their business vision with confidence.

The bank was founded in 1992 as Latvijas Biznesa banka. Since 2013, it has focused its strategy on servicing entrepreneurs and their businesses, with an emphasis on high-quality capital maintenance and structured investment projects. Signet Bank’s majority shareholders are a group of Latvian and international investors, which includes SIA Hansalink, SIA Fin.lv, and Signet Acquisition III.