Rietumu Banka has arranged a bond issuance for Grand Credit, enabling the company to raise EUR 4 million in financing.
Grand Credit will use the proceeds to develop its business, expanding lending opportunities for its clients and supporting economic growth in Latvia, as well as to refinance previously issued bonds.
The issuance comprises five-year corporate bonds with an annual coupon rate of 6%. The initial placement of the bonds will be carried out in stages, with a minimum investment amount of EUR 100,000 per transaction.
“Bonds are an effective financing instrument for business growth, and their use in the Latvian capital market is only beginning to develop. We are very positive about the growing interest of our clients in these opportunities and, for our part, provide professional support throughout the entire issuance process. Grand Credit’s bond issuance is a good example of how a successful Latvian company can apply international best practices to raise financing and expand lending in the country,” says Jeļena Buraja, Chairman of the Board / CEO of Rietumu Banka.
Grand Credit will use the financing to increase lending to its clients, primarily small and medium-sized enterprises in Latvia. This will enable the company to expand its lending portfolio while supporting business activity and investment in the Latvian economy.
“This bond issuance will allow Grand Credit to diversify its sources of financing, supporting further growth in lending volumes and the company’s sustainable development. We have been cooperating with Rietumu Banka for many years, which is why we chose the bank as our partner for the bond issuance as well. We highly appreciate the professional support provided by the Rietumu Banka’s team throughout the preparation and execution of the process. This financing will enable us to make access to funding even more widely available to our clients,” says Inita Novika, Member of the Board of Grand Credit.
Bond issuance allows companies to diversify their sources of financing by raising capital in the securities market. Alongside bank lending, this instrument provides businesses with additional opportunities to implement larger-scale development projects, contributing positively to the economy as a whole. For investors — both corporate and private — this, in turn, means a wider choice of investment instruments and additional opportunities to grow their capital.
Rietumu Banka has been providing brokerage and investment portfolio management services to its clients for many years. Expanding its range of services, the bank has also started arranging corporate bond issuances, providing clients with additional opportunities to raise financing for new projects.
About Grand Credit
Grand Credit is a Latvian financial services company established in 2007, specialising in lending solutions for businesses and individuals. For businesses, the company offers the “Universal Loan”, “Direct Investments”, “Mixed Financing System” and “Development Project Financing” programmes. Private clients can access loans for various purposes, including renovation, completion of construction works and other needs. Grand Credit also offers refinancing solutions for existing loans.