The international group of companies "Modus Group" will list its bonds on the Nasdaq Baltic First North alternative market starting 26 February 2018. Stepping into the capital market, "Modus Group" has now publicly issued its bonds which came into effect this year.
The total value of "Modus Group" bonds listed on First North since the end of February is EUR 5 million. Bondholders will annually receive 5% interest. "Modus Group’s" bond issue was publicly placed by AB "Šiaulių bankas", came into effect on 5 January 2018 and their redemption is set for December 2020.
The bonds have received tremendous attention and were redeemed swiftly by employees of the company and external investors. People were encouraged by the attractive return on investment, a promising "green" energy investment project and the clear communication with potential investors.
Funds raised on the capital market will be allocated to one of the numerous strategic activities of "Modus Group". These include the development of renewable energy projects in Poland, where the group plans to build solar power parks. These plants will deliver a total capacity of about 50 MW. In total the Group plans to invest EUR 45 million euro in alternative energy projects in Poland.
"The listing of the Group’s bonds signifies our intention to make them available to a wide range of investors; from experienced market players to investment newcomers. Securities will be available to both domestic and international investors and will ensure an increase in bond liquidity," commented Giedrius Audickas, Chief Financial Officer of "Modus Group".
According to Audickas, "Modus Group’s" participation in the stock exchange is imperative as it increases the Group’s visibility and helps to diversify its loan portfolio. This is a significant step for the company on the long term, as "Modus Group" intends to maintain its usage of alternative market instruments to attract borrowed funds and drive visibility among investors. The Nasdaq network is one of the largest stock exchanges in the world.
"We welcome "Modus Group" on the Nasdaq Baltic First North alternative market and look forward to a successful partnership. We are glad that, following a successful public placement of its bond issue, the company decided to be listed on the Nasdaq First North Baltic market. This will help raise the profile of the company in the capital markets," said Saulius Malinauskas, president of Nasdaq Vilnius. "We have noticed that this year's growing companies ever more often take advantage of opportunities provided by the First North market."
Furthermore, Audickas added that the presence of "Modus Group" on the Nasdaq exchange will increase the openness of the Group to investors. As a result of the listing, the company now plans to publish its financial results, structural changes and other similar information on a regular basis.