LATRAPS plans a bond offering with 7.5% interest rate — subscription opens November 26

Information Document for the bond issuance by LATRAPS has been published. In its first public bond offering, the cooperative aims to raise up to EUR 8 million. Private and institutional investors across the Baltics are invited to invest in the bonds, which offer a fixed annual rate of 7.5% with a maturity term of four years. The subscription period will run from 26 November to 9 December.

“As a leader in the agricultural sector, LATRAPS has demonstrated its resilience thanks to a strong infrastructure across Latvia and a stable global demand for grain. Our goal is not only to produce grain for local and international markets but also to create high value-added products. This is why we are initiating the development of the ASNS Ingredient pea protein isolate production facility this year,” says Roberts Strīpnieks, Chairman of the Management Board at LATRAPS.

The proceeds from LATRAPS bond offering will be invested in the development of the ASNS Ingredient project, the largest pea protein isolate production facility in Northern Europe, located in Latvia. Construction of the facility begins in December 2024.

“LATRAPS is an excellent example of how industries with substantial global growth potential continue to thrive in Latvia. Throughout its long history, LATRAPS has demonstrated not only stable profitability, but also strong ambitions for growth and development. The ASNS Ingredient production facility will provide the cooperative with the opportunity to capitalise on the growing global demand for plant-based proteins. The project's value is further enhanced by the presence of strong strategic partners, providing not only financial support and expertise but also reinforcing market trust in the final product,” states Kristiāna Janvare, Head of Investment Banking at AS Signet Bank.

The arranger of the bond issue is AS Signet Bank, while legal advice is provided by the law firm TGS Baltic. The bonds are planned to be listed on the Nasdaq Baltic First North alternative market.

Main terms of the offering

During the public bond offering in Latvia, Lithuania, and Estonia, LATRAPS will offer to private and institutional investors 8000 bonds, each with a nominal value of EUR 1000, annual fixed interest rate of 7.5%, and a maturity of four years.

The Information Document is available here: https://www.latraps.lv/en/services/forinvestors. 

Timetable of the offering

• Start of the offering period: November 26, 2024, at 10:00 EET.

• End of the offering period: December 9, 2024, at 14:30 EET.

• Announcement of results: December 10, 2024.

• Issue date: December 12, 2024.

Following the bond issuance, LPKS LATRAPS will submit an application to Nasdaq Riga for the inclusion of the bonds in the Nasdaq Baltic First North alternative market.