Timbro Group bond issue

About company

Founded in 2024 and headquartered in Cēsis, SIA Timbro Group (Group) is a full-service Latvian forestry group covering timber and energy wood trading, logging and timber logistics, forest and agricultural land trading, and forest property auctions. The Group employs 50+ people.

The Group holds an estimated 15%+ share of the Latvian private timber market, delivering 16 700+ truckloads of timber in H1 2026.

Timbro operates as a volume consolidator, buying from a network of 400+ timber suppliers, including third-party loggers and forest owners through roadside purchases and 6 collection points across Latvia, and selling to 250+ clients (sawmills, pulp mills, pellet producers, energy wood buyers) across the Baltics, Nordics and Central Europe. H1 2026 revenue of EUR 48.8m grew by 127.0% versus H1 2025 (EUR 21.5m), driven by higher trading volumes (+139% YoY).

Additional information: https://signetbank.com/wp-content/uploads/2026/10/Timbro-Group-Teaser-EN-final.pdf

Term Sheet

Issuer

SIA Timbro Group (Latvia)

Security type

Secured bonds

Collateral

1st ranking commercial pledge on the assets of the Issuer

Offer type

Public offer in Latvia, Estonia and Lithuania

Issue size [1]

Up to EUR 8 000 000

Coupon rate

10.0%, fixed

Coupon frequency

Paid monthly

Nominal value / min. investment

EUR 1 000

Term / Maturity

3 years (22.10.2029)

Principal repayment

Maturity date, bullet

Exchange offer

Offer to LV0000850360 and LV0000112118 bondholders for exchanging their existing bonds (1:1 exchange ratio)

Call Option

– @101% after 1Y
– @100% 6 months before maturity

Put Option

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

Covenants [2]

– Equity Ratio ≥ 25%
– Interest Coverage Ratio ≥ 1.8x
– +0.5pp coupon step-up if Net Debt / EBITDA ≥ 5.0x

Use of proceeds

– Refinancing of existing bonds
– General corporate purposes

Listing

Listing on Nasdaq Riga First North Market within 12 months after the Issue Date

Arranger

Signet Bank AS

Legal Adviser

Sorainen ZAB SIA

Collateral Agent & Trustee

ZAB Eversheds Sutherland Bitāns SIA

[1] Can be increased to EUR 12 million if applicable regulatory threshold is lifted

[2] Full list of covenants and terms can be found in the Information Document

Where to invest?