Nerijus Aukščiūnas, Head of Treasury, SBA Group: „This bond issue confirmed that capital markets are also attracted to traditional businesses, in this case furniture manufacturing. Especially for those who want to diversify their investment portfolio, which is by default mostly dominated by real estate. The fact that over 65% of the bonds have been purchased by Baltic institutional investors and other businesses that invest their own funds shows that the capital markets have confidence in the stable performance of traditional businesses. Therefore, this alternative instrument for funding operations will remain in our portfolio.“
SBA Furniture Group offered investors a 2-year security with an annual fixed interest rate of 8%. In the spring, SBA Furniture issued bonds worth EUR 2.7 million. In the second phase of the issue, investors bought EUR 4.3 million worth of bonds.
The SBA Furniture Group bond issue was distributed by Redgate Capital.
The funds raised will be used to implement the strategy of changing the financing structure, and to repay part of the loans used to finance the capacity expansion of furniture manufacturing companies ahead in time. It will also free up cash flow for future periods and prepare for a planned new expansion stage in the future.
The company issuing the bonds is SBA Furniture Group, one of the largest furniture exporters in the Baltic States. Its audited sales in 2023 amounted to EUR 333 million, and it generated a net profit of EUR 4.5 million.
