Demand from private and institutional investors from Estonia, Latvia and Lithuania exceeded the maximum volume of EUR 4 million for the second series of Volta SKAI’s secured bond programme. A total of 488 investors participated in the offering, submitting subscriptions amounting to EUR 5.136 million.
From 9 to 16 December, Volta SKAI OÜ carried out a public offering of the second series of secured bonds, open to private and institutional investors from Estonia, Latvia and Lithuania. The bonds were allocated to all participants in the issue on equal terms. All investors were allocated 54% of the volume they subscribed for, but not fewer than 5 bonds. Investors of the first series of the Volta SKAI bond programme, as well as investors subscribing for at least EUR 100,000, were allocated 100% of their subscribed volume. Bond quantities with fractional amounts were rounded up to the nearest whole number.
By country, subscriptions amounted to EUR 4.4 million in Estonia (86.6%), EUR 0.6 million in Lithuania (11.6%) and EUR 0.1 million in Latvia (1.8%).
The capital raised through the bonds will be used to finance the construction of the first tower of the Volta SKAI high-rise complex. The project, consisting of two 12-storey buildings, will become a new architectural landmark of Põhja-Tallinn, offering panoramic views of Tallinn Bay and the Old Town. Endover is the development partner of the Volta SKAI project. Construction works commenced on 2 December.
The offering is organised by AS LHV Pank, with legal counsel provided by Ellex Raidla Advokaadibüroo, and security agent services provided by Advokaadibüroo Hedman Partners & CO.
According to Endover’s CEO Roul Tutt, competition in the bond market is currently very intense, and the continued success of the Volta SKAI bond series reflects investors’ trust in the company’s capabilities and the value of its projects. “We thank investors for their contribution, which will allow us to enrich the architectural landscape of Põhja-Tallinn with a new worthy building,” Tutt added.
“It is a pleasure to say that within the second series of the secured Volta SKAI bond programme it was possible to allocate bonds to all investors. In the first series, due to strong oversubscription, more than 50 investors who had invested at least EUR 100,000 were left without allocation, as their subscription orders could not be satisfied,” said Silver Kalmus, Head of the Bond Division at LHV Pank.
Volta SKAI OÜ bonds will be admitted to trading on the Nasdaq Tallinn First North alternative market, with the first trading day on the Nasdaq Tallinn Baltic Bond List scheduled for 22 December or a date close to it. The bonds offer an annual yield of 8.3%, provided that the issuer does not redeem the bonds early and the investor holds them until maturity. Interest is paid quarterly, and the maturity of the bonds is approximately two years. Compared to bonds issued by other developers, Volta SKAI bonds carry a lower risk level, as they are secured by a first-ranking mortgage on the Volta SKAI property located at Krulli 10, Tallinn.
According to Roul Tutt, taking investors’ needs into account, Endover offers capital-raising instruments that, in addition to a competitive interest rate, also consider other important investment parameters: “Bond collateral significantly reduces the risk level, while tradability adds flexibility. The success of the completed issue confirms that we are moving in the right direction. In the future, we will continue to offer a wide range of investment opportunities and expect strong interest both in the Volta quarter projects and in other upcoming development projects.”
