AS Hipocredit bond issue

About company

Established in 2014, AS Hipocredit (the Company) is a licensed non-bank lender specializing in real estate-secured financial solutions.

The Company offers mortage-backed business loans, consumer loans and lines of credit as its main products to both private individuals and legal entities.

Hipocredit maintains a conservative portfolio loan-to-value (LTV) ratio of around 50% and the collateral is well-diversified, including different types of properties from various regions in Latvia.

Over 12 years of operations, Hipocredit has had less than 1% of issued loans written off.

Hipocredit has achieved profitable growth since inception, while preserving operational efficiency and a solid collateral base, growing its revenue at a CAGR of 12.3% since 2021.

Additional information: https://signetbank.com/wp-content/uploads/2026/08/Hipocredit-teaser-EN.pdf

Presentation: https://signetbank.com/wp-content/uploads/2026/08/Hipocredit_Investor_Presentation_2026.pdf

Term Sheet

Issuer

AS Hipocredit

Security type

Senior Secured bonds

Collateral (1)

1st ranking commercial pledge over the Company’s loan portfolio and assets

Offer type

Public offer in Latvia, Estonia and Lithuania

Issue size (2)

Up to EUR 8 000 000

Coupon rate

8% p.a.

Yield to maturity (3)

9% p.a.

Issue price (3)

97.38% (EUR 973.80 per 1 bond)

Nominal value / min. investment

EUR 1 000 / 1 bond (EUR 973.80)

Coupon frequency

Monthly

Maturity

20.08.2029 (3 years)

Principal repayment

Maturity date, bullet

Call Option

Year 1 – no call
Year 2 – @101%
6 months before maturity – @100%

Put Option

In case of Change of Control, Listing Failure or De-listing @101%

Listing

Listing on Nasdaq Riga First North within 6 months after the Issue Date

Use of proceeds

– Partially refinancing Existing Loans
– General corporate purposes

Covenants (4)

– Capitalization Ratio (5) > 20%
– Portfolio Coverage Ratio (6) > 1.20x
– Interest Coverage Ratio (7) > 1.25x

Arranger

Signet Bank AS

Legal Advisor

Sorainen ZAB SIA

Collateral Agent

ZAB Eversheds Sutherland Bitāns SIA

(1) Excluding loans pledged under the Bank’s and Mintos collaterals

(2) Can be increased to EUR 12 million if applicable regulatory threshold is lifted

(3) YTM of 9% is offered exclusively during the initial subscription period, after which the bonds will be sold at face value corresponding to YTM of 8%

(4) Full list of covenants and terms can be found in the Information Document

(5) Capitalization ratio = (Equity + Subordinated Debt) / Net Loan Portfolio

(6) Portfolio Coverage Ratio = (Net Loan Portfolio + Cash – unpaid principal amount of all Secured Borrowings) / Secured bonds

(7) Interest Coverage Ratio = EBITDA / Net Finance Charges

Where to invest?