The bonds are offered from 16–25 March, with the issue date scheduled for 27 March. The face value of a single bond is EUR 1,000, and the minimum investment is EUR 5,000. The final maturity date of the bonds is two years from 27 March 2028, and interest will be paid to investors quarterly.
In the future, SBA Furniture Group plans to increase its issue to EUR 12 million.
Investors – the opportunity to choose their yield
Investors will be able to participate in an interest rate auction and select their desired annual return: 6.0%, 6.5% or 7.0%. The final interest rate will be determined at the end of the offering, based on investor demand. During bond allocation, applications from investors selecting the lowest yield will be prioritised.
Existing SBA Furniture Group bondholders will have the opportunity to participate in a bond exchange – swapping their 2024-issued bonds for the new ones. The redemption date for existing bonds, with a total nominal value of EUR 7 million, is 29 March 2026.
Nerijus Aukščiūnas, Head of Treasury at SBA Group:
These bonds enable investors to participate in financing SBA Group’s stable, long-standing furniture business. We see that investors’ future expectations vary widely. Therefore, the proposed interest rate auction allows investors to choose a return level acceptable to them, and we expect strong interest from both private and institutional investors.
We view SBA Group as a long-term player in the capital markets, maintaining continuity of operations. With this issue, we aim to refinance previously issued bonds, maintain diversified funding sources and retain a financial reserve that ensures stable financing for the group’s operations and consistent growth.
The bond offering is being conducted directly by SBA Furniture Group. Investors can submit applications directly to the company via email at investors@sba.lt.
The legal adviser for the issue is the law firm Ellex; the investors’ trustee is Audifina.