Luminor Bank Successfully Completes €35 Million “Tewox” Bond Issue Ahead of Schedule

“Luminor” bank has successfully distributed €11.2 million worth of “Tewox” bonds to investors, completing the company’s €35 million bond issue program ahead of schedule. In the third tranche of the offering, the original target was to raise €6 million, but investor demand totaled nearly €15 million. Due to such high oversubscription, the issue was concluded earlier than planned. The annual yield on the third tranche bonds was 8%.

The full €35 million bond issue will mature on October 6, 2026, though the issuer retains the flexibility to redeem the bonds earlier. The “Tewox” bonds will soon be listed on the Nasdaq Vilnius Stock Exchange.

The prospectus for the “Tewox” bond issue reveals that the proceeds will be used to finance the development and acquisition of retail properties, as well as to refinance existing obligations.

"Real estate sector-related bonds are among the most common offerings in the Baltic States. This time, we’ve presented investors with a revenue-generating instrument from a well-established investment company. As one of the first bond issues of the year, it sets a positive tone for the Baltic debt capital market. The success of this offering underscores that a strong project, a trusted name, and well-structured terms are essential for attracting financing in the capital markets," said Gints Belevičs, Head of Markets at “Luminor” bank.

The bond offering saw significant demand from both institutional and retail investors across the Baltic States. Applications came from a mix of existing, as well as new investors who had not previously invested in “Tewox” bonds.

“Strong interest in our bond offering reaffirms the soundness of the “Tewox” business model. We have a clear long-term strategy focused on investing in retail properties that generate stable cash flows from rental income. Our portfolio in Lithuania and Poland is well-balanced and diversified, with an occupancy rate exceeding 98%. We are also actively pursuing new acquisition opportunities, and this €35 million bond issue will play a crucial role in supporting our future expansion,” said Paulius Nevinskas, Investment Manager at “Tewox.”

In the first tranche of the €35 million bond program, launched in September 2024, “Tewox” raised over €16 million. The second tranche, issued in October 2024, raised €7.7 million. The annual yield for bonds issued in the first two tranches was 8.5%.