Sia iCotton bond issue

About company

Founded in 2012 in Liepāja, Latvia, iCotton is an international manufacturer of high-quality cotton and personal care products.

The Group manufactures a wide range of products, including cotton pads, cotton buds, underpads, wet wipes, and sanitary pads. The Group’s main brands are Cleanic, Kindii (baby products), and Presto (household cleaning products), which are very well recognized among Polish customers.

Since 2012, the Group has expanded its operations both organically, as well as through acquisitions. As a result of acquisition of Harper Hygienics, the Group has production facilities in both Liepāja, Latvia, with total production area of 9 000 m2 and 11 production lines, and near Warsaw, Poland with total production area of 13 200 m2 and 44 production lines.

The Group exports a significant part of its production with home markets (Poland and the Baltics) taking up 45% of 2022 revenue, while exports to the EU and other 40 countries take up 55%.

The bond issue is secured with mortgage on real estate in Poland and Latvia (manufacturing facilities with total area of 22 200 m2). Additionally, there is a commercial pledge on trademarks and fixed assets. Importantly, these collateral assets comfortably exceed the Group’s overall secured borrowings.

Term Sheet


SIA iCotton




Private placement

Security type

Senio secured bonds

Issue size

EUR 20 000 000

Coupon rate

5.5% -6.5% + 3M EURIBOR

Coupon frequency





June 2027 (bullet)

Call option

@102% after 1st year,
@101% after 2nd year,
@100% 3 months before maturity

Put option

@101% Change of Control Put Option

Nominal value

EUR 1 000

Minimum subscription

EUR 100 000


• Equity ratio min 25%
• Net Debt / EBITDA max 3.5x
• DSCR ratio min 1.2x

Use of proceeds

Refinancing and working capital financing


Planned listing on Nasdaq First North within 6 months from issue date


Signet Bank AS

Additional information

Sia iCotton bond issue