Real estate developer Vanagas Asset Management begins distributing bonds with 10% yield
UAB Vanagas Asset Management, Lithuania based investment holding company financing real estate development, begins a public offering of a 3 million EUR bond issuance tranche. The total size of the bond issuance program is up to 8 million EUR. An annual yield of 10% is being offered to investors.
Vanagas Asset Management is part of the larger Vanagas Group, which owns well-known companies in Lithuania such as one of top three real estate development companies Citus, asset management company Demus Asset Management, developers and manufacturers of advanced ventilation systems Oxygen, and crowdfunding platform Profitus.
Watch investor call
Please note that issuer has increased coupon rate from 8-9% up to 10% due to sudden change in market situation. Please refer to updated information memorandum for the latest information.
“Our group of companies has always been characterized by ambition and creativity, so we are constantly looking for additional opportunities that not only contribute to the diversification of financing solutions but also to the faster development of the group. Therefore, we decided to issue bonds, as we see great opportunities to strengthen our group’s position in the market by acquiring new real estate projects for development, while also attracting investors who share our vision of creating innovative and cozy homes for everyone,” says Mindaugas Vanagas, founder of Vanagas Group and Citus.
The minimum investment amount is 1000 EUR, and interest will be paid to investors every six months.
The bond distribution will begin on March 31 and continue until April 25 at 3:30 PM. The distribution will be conducted via a NASDAQ auction. Both private and institutional investors in Estonia can participate by submitting investment applications through financial brokerage firms or banks (LHV, Swedbank, SEB Bank and others).
The bond distribution is organized and conducted by Lithuanian investment firm Orion Securities.
The raised funds will be used to partially finance the issuer’s ongoing and planned real estate development projects in Vilnius and to finance the company’s working capital, including short-term lending to project companies.
“We plan to finance the redemption of the bonds from the funds received from the sale of apartments in the real estate projects currently being developed in Vilnius: Kaip Niujorke by Citus, Ežero takais by Citus, Senamiesčio link by Citus, and Mūnai by Citus. We believe that, given the stable financial position of our company, the bonds being offered may provide investors with an attractive balance between the offered return and the assumed investment risk. At the end of 2024, Vanagas Asset Management consolidated equity exceeded 31 million EUR, and the consolidated equity-to-assets ratio was above 85%,” says Mykolas Navickas, CFO of Vanagas Asset Management.
Bonds secured by a primary pledge of shares of managed funds
The issued bonds will be secured by a first-tier pledge of shares in project companies owned by the issuer, with a commitment that the ratio of the nominal value of the bonds to the net value of the pledged shares will not exceed 0.5 during the entire validity period of the issued bonds (i.e., the value of the pledge will need to exceed the bond obligation by at least twice). Additionally, receivables from the parent company, UAB Vanagas Group, will be pledged for the benefit of investors.
“We are pleased that a well-known real estate development group in Lithuania has chosen the local capital market for financing its operations. We believe that, given the issuer’s solid experience in real estate development, strong capital structure, and the offered security measures, these bonds will attract investor interest,” comments Mykantas Urba, Head of Investment Banking at Orion Securities.
Long-term experience in real estate investment
Vanagas Asset Management is part of the larger Vanagas Group, responsible for managing investments in real estate.
The company has developed and is developing a total of 25 projects, with a total area of completed real estate projects exceeding 180,000 m². The company develops projects in Lithuania’s largest cities – Vilnius and Kaunas – and in popular smaller resort towns – Druskininkai and Nida.
How to invest?
Contact the financial brokerage company/bank handling your securities account for the submission of an investment order.
If you do not have an investment services agreement concluded with a financial intermediary, leave your contacts in the provided form and Orion investment consultant will contact you. Otherwise send us an email to: bonds@orion.lt.
Related documents:
Information Memorandum (EN) | Information document (EN) | Final Terms (EN)
Orion Securities recommends to consult with your financial advisor and evaluate all the risks associated with the financial instrument and/or other circumstances that are significant to you before making an investment decision.
