Integre Trans Launches its First Bond Issue of €8,000,000

Group of transport and logistics services companies Integre Trans enters the bond market and launches its first public bond issue to raise €8,000,000 investment. The 1st of two distribution stages starts on 12 April and runs until 28 April. The 2nd stage is scheduled for the end of summer this year.

‘We are probably one of the first logistics companies in Lithuania that have decided to finance its expansion through a bond issue. This is a natural and consistent move for us, as it is not the first year that we have used and diversified our funding sources, and this strategy helps us ensure growth and development,’ says Žana Kel, CEO and owner of Integre Trans.
The bonds have a term of 3 years, with the issuer’s right of redemption after the 1st and 2nd year. The bond will bear annual interest (coupon) at a fixed rate of 10% to 12% and a floating rate of 6-month Euribor, with accrued interest paid at semi-annual intervals. The nominal value of a bond and the minimum investment amount to €1,000.

Over the last few years, the company has been steadily increasing its own fleet of trucks, starting to work with a growing number of well-known international transport companies and expanding the scope of intermodal services. The funds raised will be used to finance and develop further expansion projects, secure working capital and meet strategic sustainability objectives.

Žana Kel notes that the issuance of the bonds is one more achievement and recognition for Integre Trans. ‘When I established the transport company 15 years ago, we had one truck and a team of only three employees in the first year of operation. Today, we manage a fleet of nearly 1,200 trucks and have over 2,000 employees. We already have a lot to be proud of, which motivates and encourages us to continue growing and achieving our goals.’

Integre Trans public bonds are underwritten by Orion Securities JSC FMĮ. Within six months from the end of the distribution of the issue, the securities will be included in First North, an alternative securities market operated by Nasdaq Vilnius.

Mykantas Urba | Head of Corporate Finance at Orion

‘We are pleased that more and more companies in our region are choosing to raise capital in the form of bond issues. Integre Trans as an issuer has solid financial performance and historically fast growth of its business volumes. We believe that the issuance of bonds will help the company achieve its development plans more efficiently and will give investors the opportunity to invest in a debt instrument offering an attractive return-to-risk ratio,’ says Mykantas Urba, Head of Corporate Finance at Orion Securities.

Karolis Pikūnas, Head of Orion Securities, notes: ‘Due to the lower minimum investment amount, Integre Trans bonds are targeted not only at larger Lithuanian investors but also partly at smaller retail investors who are less likely to have the opportunity to participate in bond offerings in the Baltic capital markets. I believe that the involvement of smaller investors in this issue will bring more liquidity to the Baltic capital markets and to investors participating in the secondary trade. Also, the relatively high interest rate should appeal to investors who like higher returns and risk.’

Orion Securities suggests that before making an investment decision, you consult with your financial advisor and evaluate all the risks associated with the financial instrument and/or other circumstances that are significant to you.

More information:

– Full project descibtion and documentation here

Related documents:

– Information document (Lithuanian version)
– Project teaser document
– Full project presentation