Capitalica Fund successfully issued bonds amounting to EUR 3 million for Verde green office complex in Riga

Capitalica Baltic Real Estate Fund I, managed by the investment management company Capitalica Asset Management, has successfully completed the first phase of a three-year bond issue, issuing EUR 3 million worth of securities for the development of the Verde green office complex in Riga. In 7 days, the issue attracted more than 80 private and institutional investors.

"The exceptional interest of investors in the bonds confirms the attractiveness of the Verde office green complex project in Riga and the extremely good return opportunities. Although COVID-19 poses a challenge to the office market, detailed calculations and high demand for bonds confirm that the new complex aptly fills a large Class A office niche in the Latvian capital, and accordingly ensures a proper income for investors in the fund's bonds,” commented Andrius Barštys, CEO of Capitalica Asset Management.

According to him, the successful first phase of the issue also confirmed, as planned, the forecast that in an environment of expected higher inflation and low interest rates, investors are particularly interested in alternative investments in securities linked to business centers, which have long been a privilege available only to professional investors.

At present, Capitalica Baltic Real Estate Fund I is the only issuer that has publicly issued bonds for EUR 8 million only in the Lithuanian capital markets. The company has earned great confidence from local investors through consistent work in the capital markets, excellent communication and a clear business strategy,” said Tomas Varenbergas, Director of the Markets and Treasury Department at Šiaulių bankas.

The final annual interest rate on the bonds of the first phase of the issue was determined by auction and amounted to 6.5 percent. Interest will be the same for all investors and will be paid regularly, i.e. quarterly. Investors bought a total of 30,000 units of the company's bonds, with a nominal value of EUR 100 per bond. "As it is usually possible to invest in our fund only from EUR 125 thousand, low-denomination bonds created an opportunity for a much wider circle of investors to purchase an attractive product and become our partners," said Barštys.

In the future, investors will be offered to buy bonds for another EUR 5 million. Issue organizers and distributors are Šiaulių bankas AB and Luminor Bank AS.