KAITA Group launches bond offering with a 10.5% interest rate

The offering is organised and carried out by the investment services company Orion Securities.

Housing market highly active, demand expected to continue growing

“Vilnius’ real estate market is currently very active, housing affordability has returned to pre-pandemic levels, and demand is likely to continue growing next year due to both the reduced down payment requirement and the option to withdraw funds from the 2nd pension pillar. We achieved this year’s planned sales targets within 10 months and are among the companies that have sold the most housing in the capital. All these indicators encourage us to further increase the supply of residential real estate in the city, and the capital raised will be used for refinancing obligations and ensuring continued financing of our ongoing projects,” says Ugnius Latvys, CEO and partner of KAITA Group.

Over 8 years, KAITA Development has successfully completed 26 real estate projects. The company is now developing a €31 million modern apartment complex Off in Naujamiestis, with 242 planned homes, including the last newly built lofts in the capital.

In Žirmūnai, the company is developing Moods, the first apartment complex in Lithuania created together with neuroscientists. The €20 million project includes 204 homes and an environment designed to comprehensively contribute to happy, healthy family life and support children’s development.

The Newton apartment towers rising in Viršuliškės,currently the tallest residential buildings under construction in the capital, are generating particularly strong interest among new buyers. The topping-out wreath has already been placed atop the first 18-storey tower, and almost all apartments in it have been sold. The project is valued at €31.4 million and includes 232 planned homes.
During the first 10 months of this year, KAITA Group sold 200 apartments in Vilnius and was the most popular choice among buyers in May and June.

More about the bond issue.

Institutional investors show confidence

“We base our activities in both Lithuania and Europe on cooperation: we ensure growth and high-quality projects by attracting investment from external investors. Long-term experience in the real estate market and leadership in housing sales allow us to attract not only retail but also institutional investors. The fact that highly experienced investors choose us demonstrates recognition of our consistent work creating long-term value and confirms the attractiveness of returns generated by our projects,” says U. Latvys.

The company ensures a highly diversified financing structure. One of the largest real estate developers in Lithuania, Hanner, has invested in the Off and Moods projects.

Hanner and KAITA Group are also jointly developing community-living projects abroad—the Youston complex in Prague and a project currently under construction in London. The bond issue to finance the Youston development, held this July, attracted investor interest four times greater than the supply and raised €8 million.

The Newton towers in Viršuliškės have attracted investment from Areus, a group of companies operating in the energy, pharmaceuticals, and real estate investment sectors.

Both private and institutional investors can participate

The bond issue aims to raise up to €4.5 million over several stages. Both private and institutional investors may invest by submitting investment orders through banks and brokerage firms. The minimum investment is €1,000, and interest will be paid semi-annually.

“The issuer’s performance and the sector’s activity suggest that the traditional choice in Lithuania, investing in real estate, remains popular in today’s market. Compared to the current environment in the commercial real estate segment, residential housing projects tend to have relatively short implementation periods and clearly defined exit routes (by selling individual units). For these reasons, bonds as an additional source of project financing alongside bank loans are a structurally attractive solution for developers like Kaita Development,” says Mykantas Urba, Head of Investment Banking at Orion Securities.

KAITA Group is one of the largest real estate developers in Lithuania, having completed 26 projects. The company currently offers nearly 700 homes in Vilnius for new buyers. In the rental housing market, the group operates the largest rental portfolio in the country: more than 550 units in Lithuania and nearly 1,000 rental homes across Europe.

Bonds secured with collateral

The bond issue will be additionally secured by pledging share packages of KAITA Group companies that manage the ongoing real estate projects. The collateral will cover the shares of UAB Namų plėtros projektai, which manages the Moods project, and UAB Miesto forma, which manages the Off project. Additionally, receivables from UAB Kaita International, with a total value of €2.3 million, will be pledged to bond investors.
The issuer also commits to ensuring that from the start of the bond issue until December 31, 2026, the ratio between the nominal value of issued bonds and the net collateral value will not exceed 0.6, and from January 1, 2027, until bond maturity, not more than 0.5.

Join investor call

We invite investors to join the remote bond issue presentation in English, December 10, 2025, at 2 PM. Registration link.

How to invest?

Contact the financial brokerage firm or bank that manages your securities account to place an investment order (or submit the order through the bank’s online self-service platform).

If you do not have an investment services agreement with a financial intermediary operating in Lithuania, please email us at obligacijos@orion.lt

 

Orion Securities recommends consulting with your financial advisor before making any investment decision and evaluating all risks related to the financial instrument and/or any other circumstances that may be relevant to you.