Signet Bank successfully arrange the issue of bonds of the fintech company Sun Finance

In cooperation with Signet Bank, the Latvian-based fintech company Sun Finance has successfully implemented its largest bond issue to date and used the raised funds to refinance the first issue of bonds and invest in the company’s development.

As a result of this bond issue, the first EUR 10 million bond issue organized in August 2019 was refinanced. The new bond issue size totalled EUR 20 million, with an annual coupon rate of 11% and maturity of 3 years. Bonds were offered to investors in the form of private placement, and existing bondholders had the opportunity to exchange their existing bonds for new ones. The company plans to include this bond issue in the Nasdaq First North alternative market.

With each bond issue, we successfully continue the course we started, which is also appreciated by investors. We will use the raised capital to diversify funding sources and focus on aggressive growth. Currently, we are working on expanding the range of lending products in existing markets, which is planned for the end of this year. At the same time, being on investors’ desktops proves not only our international competitiveness, but also a well-chosen business model that will help us conquer new markets and peaks.

Toms Jurjevs, Sun Finance CEO and founder

For Sun Finance, this is the third bond issue arranged by Signet Bank. The Signet Bank Capital Markets Team provides support to Baltic companies in structuring debt and equity transactions, and raising funds in the capital market.

More than 80% of investors who chose to invest in the first bond issue exchanged their previous bonds for new ones, which shows investors’ confidence in the company’s business model and future development prospects. We are truly pleased to be able to contribute to the dynamic growth of a leading financial technology company in Latvia.

Roberts Idelsons, CEO of Signet Bank

It has been a pleasure during these three years since working with Sun Finance to see great progress both in the company’s financial performance, and in building investor relations, which has helped the company to strengthen its reputation in the Baltic capital market and gradually expand the circle of investors.

Kristiāna Janvare, Head of Investment Division at Signet Bank

In July 2021, the total amount of loans issued by Sun Finance over the four years since the beginning of its activity amounted to one billion euros. The success of the company was noted by a UK-based business newspaper “Financial Times”, which ranked Sun Finance as the second fastest growing company in Europe. Ranking at the top of the FT 1000 rating is historically the first time a company from Latvia has managed to get into the TOP50.

About Sun Finance

Sun Finance is a financial technology company established in Riga, in 2017, by CEO Toms Jurjevs and co-founder Emīls Latkovskis. Sun Finance operates as an online consumer financing platform in seven countries, three continents, with headquarters located in Riga, Latvia. Sun Finance has more than 6 million registered customers and employs more than 950 people, 148 of whom work at the headquarters in Riga. The company is led by a team of seasoned professionals with more than 10 years of experience in managing FinTech, financial and IT companies.

About Signet Bank AS

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 management and structuring financing projects. Signet Bank’s majority shareholders are a group of Latvian and international investors, which includes SIA Hansalink, AS RIT Group, and Signet Acquisition III.