Telecommunication company Fastlink launches 3 M Eur public bond issue with guarantee from Lithuanian state institution ILTE
Lithuanian telecommunications company UAB, Consilium Optimum, known to consumers as the Fastlink brand, has launched a public three-year bond issue aiming to raise €3 million, offering investors an annual interest rate of 9%. This issue is secured with a €1.5 million guarantee from ILTE, providing additional security to investors.
The distribution of these securities begins on November 29 and will continue until December 18 at 3:30 PM. Both private and institutional investors can participate by submitting investment applications through financial brokerage firms and banks (LHV, Swedbank, SEB and others). The minimum investment amount is €1,000, with interest paid quarterly. The bonds are planned to be listed on the alternative Nasdaq Baltic First North market no later than six months after issuance.
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The bonds are secured by a first-priority pledge of assets – specifically, the issuer pledges receivables from signed customer contracts. According to data from October 2024, more than 60% of the company’s revenue comes from contracts with an average term of 35 months. Statistically, 97% of customers renew their contracts upon expiration, and contractual obligations to the company increase monthly.
To Estonian investors Fastlink (Consilium optimum) is already known from the previous bond issue earlier this year. In May 2024, the company successfully issued a €5 million bond, with demand exceeding supply by 1.3 times. Around 30% of the total investment orders were submitted by Estonian investors.
ILTE guarantee for investor confidence
Fastlink is the first company to receive additional investor security from Lithuanian state institution ILTE. The ILTE guarantee secures 50% of the nominal value of the bond issue, i.e., €1.5 million, which would be compensated to bondholders in the event of issuer bankruptcy. ILTE is a state-established financial institution in Lithuania that, as of November 21, 2024, became the National Development Bank. ILTE’s activities are focused on state-funded measures to promote small and medium-sized businesses, support economic entities during start-up, operation, and expansion phases, and create or maintain jobs while increasing competitiveness.
Use of funds raised through bond issue
The funds raised will be used for business segment expansion, system improvements, and the development of new services. The bonds are planned to be redeemed through bank refinancing and operating cash flows. The company achieved exceptional financial results in the first nine months of 2024 compared to the same period in 2023, with revenue growing by 41% and EBITDA by nearly 66%.
About Fastlink
Operating throughout Lithuania, Fastlink provides mobile communication, fiber-optic internet, smart TV, video surveillance, and other innovative telecommunications and IT services to over 35,000 private and business clients. In recent years, the company has heavily invested in network expansion, increasing customer numbers, and boosting network capacity to accommodate new users.
In a market characterized by rising prices, Fastlink stands out as a company aiming to mitigate this growth and ensure affordable services for its customers. The company regularly monitors market trends, offering discounts, promotions, and competitive pricing for its services. This strategy helps maintain a lower price level in the market, providing customers with quality services at accessible prices.
“We decided to issue a second tranche to finance further expansion and technological progress. 70% of the funds from the first issuance are being used for investments in the company’s network and IT systems infrastructure, while the remaining 30% are being allocated to IT solutions and the development of new services, enabling us to serve significantly more customers. The guarantee provided by ILTE adds reliability not only for investors but also allows us to optimize financing costs and achieve the best growth results” stated Vitalijus Romualdas Andrijauskas, CEO of UAB Consilium Optimum.
“Fastlink’s current fiber-optic internet speed can reach up to 10 Gbps, meaning a high-quality 20 GB movie can be downloaded in less than 20 seconds. This is the fastest internet plan available to private customers in Lithuania, particularly beneficial for heavy internet users like gamers or streaming enthusiasts” said Fastlink’s Deputy Director Denis Savrackij. The service uses advanced Passive Optical Network (PON) technology, which does not emit radio waves and consumes less electricity, making it more environmentally friendly and economical.
According to the RRT electronic communications market report for Q2 2024, Fastlink is the fastest-growing provider in Lithuania in the market segment for fiber-optic services, showing the highest market share growth over the past year.
“During the previous bond issuance, demand significantly exceeded supply, so we are pleased to once again offer investors the opportunity to invest in UAB Consilium Optimum, a company with a well-developed business model, notable cash flow generation, and operating in a relatively low-cyclicality sector” said Mykantas Urba, Head of Finance at Orion Securities.
“It is also good to see the Lithuanian state’s support for small and medium-sized businesses. The ILTE guarantee not only provides additional security for investors but also facilitates the issuer’s ability to issue bonds” added M. Urba.
The bond issue is organized by Lithuanian investment banking company Orion Securities providing full range of investment services to high-net-worth individuals and companies. Orion Securities services include private banking, investment banking, corporate finance, M&A, depositary for asset management companies, capital markets and others. More information: https://www.orion.lt/en/
How to Invest?
Investment orders can be submitted through financial brokerage firms and banks (LHV, Swedbank, SEB and others). Alternatively investors can place there order request in this form or contact bonds@orion.lt
• More information (in English): https://www.orion.lt/en/fastlink-consilium-optimum-public-bond-offering/
• More information (In Estonian): https://www.orion.lt/en/fastlink-consilium-optimum-avalik-volakirjade-pakkumine/
• Join investor call (in English) December 5th 2PM, Zoom platform. Register here: https://us06web.zoom.us/webinar/register/WN_b0PWaO0EQ9-IX-bLS8vlYg During this call Fastlink and Orion Securities teams will present bond issue details and answer investor questions.
