AS ELKO Grupa bond issue

About the Group

Founded in 1993, AS ELKO Grupa (Group) is one of the largest IT product and solutions distributors in Northern Europe, as well as one of the largest companies in Latvia by revenue. The Group employs more than 1 200 employees across 13 countries.

The Group offers more than 40 000 IT and consumer electronics products from over 400 leading IT manufacturers such as Apple, Samsung, Lenovo, Asus and others.

The Group was founded by 4 Latvian entrepreneurs who still maintain the controlling stake (51%) of the Group.

The Group is an experienced capital markets participant, with 3 issued bonds since 2007. Revenue of the Group grew by 12.3% during the first 9 months of 2025, reaching USD 867.7m, while the net profit in the same period saw a 9.7% increase, reaching USD 4.4m.

Additional information: https://www.elkogroup.com/ and https://signetbank.com/wp-content/uploads/2025/12/ELKO-Grupa-Teaser-EN.pdf

Presentation: https://signetbank.com/wp-content/uploads/2025/12/ELKO-Grupa-Investor-Presentation.pdf

Term Sheet

Issuer

AS ELKO Grupa (Latvia)

Security type

Unsecured bonds

Offer type

Private placement with EUR 100 000 minimum subscription

Issue size

EUR 20m (option to increase to EUR 30m)

Coupon rate

7.25%

Coupon frequency

Semi-annual

Term / Maturity

4 years

Principal repayment

Maturity date, bullet

Exchange offer

– Offer to LV0000870079 bondholders for exchanging their existing bonds (1:1 exchange ratio)
– 0.75% exchange premium
– Only investors holding min. EUR 100 000 of LV0000870079 shall qualify for the exchange

Call Option

– @103% after 1Y;
– @102% after 2Y;
– @101% after 3Y;
– @100% 6 months before maturity

Put Option

Change of Control @101%

Nominal value

EUR 1 000

Covenants

– Adjusted Equity Ratio ≥ 16%
– Interest Coverage Ratio ≥ 1.5x

Use of proceeds

– Refinancing of existing bonds
– General corporate purposes

Listing

Listing on Nasdaq Riga First North Market within 3 months after the Issue Date

Arranger

Signet Bank AS

Where to invest?