EBRD backs debut bond issue by Lithuanian retailer Maxima Grupė

By Axel  Reiserer

The EBRD is supporting capital markets development in the Baltic states with a €40 million investment in a corporate debut bond issued by Lithuanian retailer Maxima Grupė.

  • The EBRD invests €40 million in Maxima Grupė’s debut bond issuance
  • Largest debt capital markets issue by a private sector company from the Baltic states to date
  • Maxima Grupė is the leading retail chain in the Baltic states

The EBRD is supporting capital markets development in the Baltic states with a €40 million investment in a corporate debut bond issued by Lithuanian retailer Maxima Grupė.

The proceeds of the bond will help Maxima Grupė to refinance short-term financing for the acquisition of Polish retailer Emperia Holding, which was concluded earlier this year and enabled it to significantly expand its regional presence.

Maxima Grupė is the leading retail chain in the Baltic states, the largest employer and the second largest corporate in Lithuania. Maxima Grupė’s store network includes over 1,000 stores in the Baltic states, Poland and Bulgaria.

The acquisition of Emperia Holding enables Maxima Grupė to increase its scale and competitiveness on a regional level, while also fostering international trade by offering more local suppliers access to the Baltic states and Polish markets.

The bond will be the first bond issuance of this size by a private sector company from the Baltic states. The bond of €300 million will be dual-listed on the Euronext Dublin and NASDAQ Vilnius stock exchanges.

The successful placement of the bond is a strong signal about the potential of the Baltic states’ capital markets, where the countries are committed to establish a regional capital market to harmonise regulations and dismantle investment barriers.

The transaction follows the recent capital market transactions where the EBRD invested €30 million into each of the two green bonds issued by Lithuanian utilities company Lietuvos Energija in 2017 and 2018.

The EBRD has been working in the Baltic states since 1991 and to date has invested some €2 billion in more than 250 projects in Estonia, Latvia and Lithuania. Strengthening private enterprises and developing the capital market are among the Bank’s priorities in these countries.