NOT TO BE RELEASED, PUBLISHED OR DISTRIBUTED IN WHOLE OR IN PART IN OR INTO OR TO ANY PERSON LOCATED IN OR RESIDENT IN SUCH COUNTRIES OR JURISDICTIONS IN WHICH IT WOULD BE UNLAWFUL OR REQUIRE MEASURES OTHER THAN THOSE REQUIRED UNDER LATVIAN LAWS, INCLUDING THE UNITED STATES, AUSTRALIA, JAPAN, CANADA, HONG KONG, SOUTH AFRICA, SINGAPORE

The development financial institution ALTUM, which has been assigned a credit rating of Baa1 by the international credit rating agency Moody's, issued bonds in the amount of EUR 20,000,000 with a fixed annual interest rate of 1.3% and a yield to maturity 1.3%. Investors from Latvia, Lithuania and Estonia showed interest in this issue and the subscribed amount exceeded the issued amount almost four times.

On 8 April, ALTUM issued Notes in the total amount of EUR 20 000 000 – the second issue of Notes within EUR 70 000 000 Notes issue programme - with a yield to maturity 1.3%. The Notes were issued in addition to EUR 10 000 000 Notes issued on 7 March 2018 and EUR 15 000 000 Notes issued on 5 June 2019 with a maturity date on 7 March 2025 and a fixed annual interest rate of 1.3% (ISIN LV0000880037), which are listed on the Nasdaq Riga Bond list. The transaction attracted a great deal of interest from investors in Latvia, Lithuania and Estonia and the Notes were oversubscribed 3.8 times. The Notes were allocated to 15 investors in the Baltics: 3 banks (7%) and 12 asset managers and insurance companies (93%).

Proceeds from the Notes will be used for ALTUM’s funding purposes of sustainable business projects that are vital for the national economy within agriculture.

Reinis Bērziņš, Chairman of the Management board of ALTUM:

“Despite the uncertainty in the capital markets caused by the global coronavirus pandemic, ALTUM is confidently moving forward with its chosen fundraising strategy. We are pleased with the strong interest from investors, which allows us to issue notes on better financial terms than we achieved in the issues of 2017 and 2018, when the capital markets were stable, even in these difficult times for the global economy. By implementing special financial instruments, ALTUM in Latvia is one of the cornerstones for supporting companies affected by the virus crisis. At the same time, we provide entrepreneurs with all the ordinary ALTUM instruments, which companies also actively use for development in accordance with their specifics and needs. We will use proceeds from this notes issue to expand operations of the ALTUM-run Land Fund to further strengthen the fund’s rapid growth in recent years. The volume of Land Fund new transactions is growing every year and in 2019 the fund's portfolio doubled, and currently its total amount is rapidly approaching 50 million euros.  In general, the fund raising in capital markets ensures diversified funding sources, helps us be sustainable and self-sufficient in attraction of the funding, while at the same time promoting the development of the Baltic capital market.”

AB SEB Bankas acted as the sole bookrunner of the transaction.

DISCLAIMER 

Neither this announcement nor any copy of it, in whole or part, may be taken or transmitted, directly or indirectly, into the United States, Australia, Japan, Canada, Hong Kong, South Africa, Singapore or any other jurisdiction where to do so would be unlawful. This announcement does not constitute or form part of any offer or invitation to sell, or any solicitation of any offer to purchase or subscribe, any securities to any person in any jurisdiction, nor shall it (or any part of it) or the fact of its distribution, form the basis of, or be relied on in connection with, any contract therefore. The offer and the distribution of this announcement and other information in connection with the offer in certain jurisdictions may be restricted by law and persons into whose possession any document or other information referred to herein comes should inform themselves about and observe any such restriction. Any failure to comply with these restrictions may constitute a violation of the securities laws of any such jurisdiction. This announcement is not an offer for sale of, or a solicitation to purchase or subscribe for, any securities in the United States. The securities have not been, and will not be, registered under the US Securities Act of 1933, as amended, and the securities may not be offered or sold in the United States absent registration or an exemption from registration under the Securities Act of 1933, as amended. The Issuer has not registered and does not intend to register any portion of any offering in the United States or to conduct a public offering of any securities in the United States. This announcement is addressed to and directed at persons in member states of the European Economic Area who are ''qualified investors'' within the meaning of the Regulation (EU) 2017/1129. Any investment activity (including, but not limited to, any invitation, offer or agreement to subscribe, purchase or otherwise acquire securities) to which this announcement relates will only be available to, and will only be engaged with, persons who fall within the manufacturer target market.

JSC Development Finance Institution ALTUM is a Latvia state-owned company that ensures access of the enterprises and households to the financial resources by means of support financial instruments - loans, guarantees, investments in venture capital funds - in the areas defined as important and to be supported by the state, thus developing the national economy and enhancing mobilization of the private capital and financial resources. On 25 March 2019 Moody’s Investors Service (Moody’s) reconfirmed Altum’s Baa1 long-term issuer rating, with outlook stable. The baseline credit assessment (BCA) was upgraded to investment grade rating baa3. The assigned Moody’s rating of Altum is one of the highest credit ratings assigned to corporate entities in Latvia. On 24 October 2017 the bonds issued by Altum were listed on a regulated market – Baltic Bond List of Nasdaq Riga. ALTUM was the winner of Stock Exchange Event of the Year award in Nasdaq Baltic Awards 2019.         

         Laura Lapkovska
         AS Attīstības finanšu institūcija Altum Investors Relationships Division
         Tel.: +371 67774023, +371 26165699
         E-mail: Laura.Lapkovska@altum.lv