One of Estonia's leading real estate developers, Invego, has announced the terms of its first public bond issue. The secured bonds offered to investors in all Baltic countries from May 12-22, 2025 will have an interest rate of 11% per annum and a term of 4 years. The company aims to raise up to 4 million euros to further finance real estate development projects in Latvia. The bonds are planned to be listed on the Nasdaq Baltic First North market.
The bonds will be issued by Invego Latvia OÜ, an Estonian company within the Invego group, which will issue up to 4,000 secured bonds with a nominal value of 1,000 euros each. The bonds have a 4-year term and a fixed interest rate of 11% per annum. Interest will be paid quarterly. The bonds are secured by a commercial pledge on 100% of Invego Latvia SIA shares. The bonds are planned to be listed on the Nasdaq Baltic First North alternative market.
Retail and institutional investors from the Baltic countries can submit subscription orders at all banks offering investment services in the Baltic countries from May 12 at 10:00 AM until May 22 at 3:30 PM. Since banks may stop accepting subscription orders via internet banking at an earlier time, it is recommended to submit electronic orders by noon on May 22 at the latest.
Use of Funds
Operating in three countries with more than 30 development projects, Invego will direct the raised funds for additional financing of real estate development projects in Latvia. The capital will strengthen the company's position in the Latvian market, where 12 development projects are currently in progress - 6 in the sales phase and 6 in the development phase.
The raised money will be used to finance development activities, ensuring the successful implementation of construction stages and the necessary co-financing alongside bank loans and existing investors. Investments include planning, design, marketing, and construction equity.
"With more than 10 years of operation, Invego has proven its ability to successfully create comprehensive living and business environments that grow in value over time. Today is the right time to support expansion in the Latvian market, where we see significant growth potential," said Invego CEO Kristjan-Thor Vähi. "Our experience in Riga proves that real estate there is currently more affordable compared to Tallinn, demand is higher, and customers' expectations for improving living standards are growing rapidly. Invego is already selling more homes in Latvia than in Estonia this year."
Latvian Market Potential
Invego focuses on residential areas in Riga and its surroundings, where the company has over 3,000 homes under development with a total area of 250,000 m². The projects include both apartment buildings and townhouses, bringing quality residential real estate to different segments of the market.
"We are already one of the largest developers in the Latvian market, and our goal is to grow to a sales volume of 300 million euros there by 2030," Vähi explained. "Planning procedures in Riga are significantly faster, which allows keeping capital working more efficiently."
The Latvian market is strategically important for Invego, as real estate prices in Riga are on average more affordable than in Tallinn, while construction costs are comparable. In addition, over 90% of Riga residents still live in Soviet-era apartments, and compared to Estonia, the number of loans issued per capita in Latvia is more than two times lower, indicating clear growth potential.
Subscription and Investment
Investors can subscribe to bonds through Baltic banks offering securities services. An active securities account is required for subscription, and the minimum subscription amount is 1,000 euros. The results of the offering will be announced on May 26, and the first trading day of the bonds is scheduled for May 30 or later. The redemption date of the bonds is 4 years from the registration of the bonds, i.e., presumably May 29, 2029.
AS LHV Pank is the arranger of the bond issue, and TGS Baltic law firm is the legal advisor.
More detailed terms of the offering are available on the company's website at: www.invego.ee/investor.
About Invego
Invego is a new-generation real estate developer operating in three countries, specializing in the creation of large-scale residential areas and business quarters with an integrated concept that creates future urban space. With over 10 years of operational history, the Invego group includes over 30 companies in Estonia, Latvia, and Portugal, and has about 30 different development projects in progress. Invego has developed more than 150,000 m² and has an additional 450,000 m² of residential and commercial real estate in progress.
Among companies developing real estate in Tallinn and its surroundings, Invego ranks second in terms of new homes sold over the past five years, with 900 homes. Its largest developments to date include the completed Vana-Peetri, Tiskreoja, and Tabasalu Kodu, as well as the currently ongoing Luccaranna, Uus-Järveküla, and Keila Pargikodud residential areas. The company has also developed over 50,000 m² of commercial space.
In the Latvian capital, Invego is developing residential areas Vitolu Parks, and together with development partner Reterra, Parka Kvartals, Skanstes Rezidences, and Miera Rezidences, as well as townhouses in Vide Adaži and Mārupes Sirds developments near Riga.
In southern Portugal, the 65-hectare Silves Hills development with 154 villas is underway, suitable for both year-round living and seasonal use.
www.invego.ee
This is a securities advertisement within the meaning of EU Regulation 2017/1129/EU. The issuer is Invego Latvia OÜ. Before deciding, please familiarize yourself with the terms of the offer, risks, and other information: www.invego.ee/investor. This information is not advice, an offer, or an invitation to purchase securities. If necessary, consult with an expert. Bonds are offered only in Estonia, Latvia, and Lithuania.
Please enter your username and password.
2025 © The Baltic Times /Cookies Policy Privacy Policy
