Estonia
Poland
Finland
Italy
Latvia
CrossChem, a leading manufacturer of sustainable and environmentally friendly products, has successfully completed its second bond placement. To support ongoing growth and refinance existing bonds, the Company issued €3.5 million in notes with a three-year maturity. The issue, which was conducted as a private placement, resulted in total demand surpassing €4.5 million.
31.10.2024.
“Initially, we aimed to issue €3 million out of a total available €5 million to refinance existing liabilities. However, strong investor interest enabled us to increase the issue size to €3.5 million. This accomplishment reflects market confidence in CrossChem’s sustainable growth strategy and our commitment to advancing innovation in the chemical sector. We intend to raise the remaining €1.5 million in 2025–2026, depending on the Company’s funding requirements,” said Ričards Andersons, Chairman of the Board at CrossChem.
Total demand for the securities exceeded €4.5 million. Greater interest in the CrossChem note offering came from private investors, who accounted for 54% of the total demand, while the remaining 46% came from institutional investors.
The CrossChem note offers an 8% coupon rate with a three-year maturity (31 October 2027). The minimum subscription amount was €100,000. Investors who subscribed for the minimum investment amount of €100,000 received the full amount, while larger orders were partially satisfied due to high demand. Priority was given to holders of prior bonds with ISIN LV0000860047, maturing on 4 November this year, allowing them to exchange for new CrossChem notes. Nearly half of these bondholders opted to exchange.
“CrossChem’s latest note issuance reflects the Company’s ability to inspire long-term investor confidence and support the growth of local manufacturing in Latvia. After three successful years in the capital markets, CrossChem demonstrates strong investor relations and solid financial performance providing a long-term foundation for financing through the capital markets,” said Edmunds Antufjevs, Head of Investment Banking in Signet Bank AS.
The notes are expected to be listed on Nasdaq Riga’s First North alternative market within one week of issuance. Signet Bank AS serves as the arranger of the CrossChem note issue, with Eversheds Sutherland Bitāns acting as both the legal and certified advisor.
CrossChem – 100% Latvian capital company that is part of the CrossChem International group and is part of a worldwide chain of manufacturers and distributors of chemical products. The Company’s business is based on the production of sustainable and environmentally friendly products, which, by combining world experience, allows to reduce costs and increase competitiveness. SIA CrossChem produces AdBlue®, AUS40®, liquid fertilizers and auto chemicals, as well as provides a range of services related to these products.
