Demand for Fastlink bonds exceeded supply by more than 2 times
The Lithuanian telecommunications service provider UAB Consilium optimum, known to consumers as the brand Fastlink, has issued a €3 million asset-backed bonds with an annual interest rate of 9%.
The bonds are secured with a first-order pledge of the asset complex—investors will be granted a pledge of receivables from contracts signed with customers. Additionally, this is the first bond issue in Lithuania to receive a state ILTE guarantee, covering 50% of the nominal value of the bond issue (€1.5 million).
The bonds have a 3-year term and will be listed on the First North (Nasdaq Vilnius) bond market no later than six months from now.
In addition to Lithuanian investors, investors from Estonia and Latvia actively participated in the issuance. Demand for the offering reached €6.253 million, meaning demand exceeded supply by more than 2 times.
In May 2024, a €5 million 3-year bond offering with an annual yield of 12% saw demand exceed supply by 1.3 times.
“The funds raised from the just-issued offering will be used for the expansion of the company’s business segments, system improvements, and the development of new services. The bonds are planned to be redeemed using bank refinancing and operating cash flows. During the first 9 months of 2024, we achieved exceptional financial results compared to the first 9 months of 2023—revenues increased by 41%, and EBITDA grew by almost 66%. Our well-crafted business model, stable revenue streams, constantly growing customer base, and the state ILTE guarantee instilled confidence in investors, who were highly active during the offering,” said the company’s founder and CEO, Vitalijus Romualdas Andrijauskas.
Operating across nearly all of Lithuania, Fastlink provides mobile communications, fiber-optic internet, smart TV, video surveillance, and other innovative telecommunications and IT services to more than 35,000 private and business clients. In recent years, the company has heavily invested in network expansion in Lithuania, increased its customer base, and enhanced its network capacity to connect new clients. According to the RRT electronic communications market report for Q2 2024, Fastlink is the fastest-growing provider in Lithuania in terms of market share for services over fiber-optic lines.
“Both during the first issuance, which we offered in May 2024, and during this issuance, demand significantly exceeded supply. While real estate-backed bonds are generally more attractive and better understood by Lithuanian investors, in the case of Consilium optimum, strong financial results, a clear growth strategy, the issuer’s operation in the relatively non-cyclical telecommunications sector, and the ILTE guarantee were factors positively evaluated by investors seeking diversification opportunities,” stated Mykantas Urba, Head of Corporate Finance at Orion Securities.
The bond offering and distribution were organized and conducted by Orion Securities.
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