Lithuanian dental clinic chain Neodenta launches €3 M Eur public bond offering with 10% annual interest
Lithuanian dental clinic network specializing in implantology and aesthetic dentistry, Neodenta, has launched a public bond offering secured by real estate. The 3-year bond issuance aims to raise up to €3 million, offering investors an annual interest rate of 10%.
The securities are available for subscription from December 2 until December 13 at 3:30 PM. Both private and institutional investors in Estonia, Latvia and Lithuania can participate by submitting investment applications through financial brokerage firms or banks.
Register to investor webinar here.
The minimum investment amount is €1,000, with interest paid semi-annually. The bonds are expected to be listed on the alternative Nasdaq Baltic First North market within three months of issuance.
Use of funds raised and collateral
The funds raised will be used to acquire new real estate properties for dental clinic operations, establish and equip new clinics, or expand through the acquisition of existing clinics. Up to €555,000 will be allocated for refinancing current loan related to property acquisitions for clinic network expansion.
The bonds will be secured by existing and newly acquired real estate properties, as well as a designated bank account holding the bond proceeds. The issuer commits to ensuring that the total pledged property value will not fall below €3.3 million, with a loan-to-value (LTV) ratio not exceeding 0.91. Collateral agreements will be registered within 30 days of bond issuance for current properties and within 30 days of purchasing new properties with bond proceeds.
The issuer also commits to maintaining a minimum equity level of 20% throughout the bond term and a net debt-to-EBITDA ratio not exceeding 4.5x.
Eglė Kunčiuvienė, the founder and CEO of Neodenta, emphasized the company’s profitability since the establishment of its first clinic in 2000. She stated that their expansion is carefully planned, focusing on quality over quantity to ensure top-level services and the adoption of the latest technologies. The repayment of the bonds will be made from profits generated through the planned expansion strategy.
About Neodenta: steady growth and a clear expansion strategy
Neodenta began its operations in 2000 with the opening of its first clinic in Kaunas, Lithuania. Today, the company operates 29 dental offices located in Lithuanian cities of Vilnius, Kaunas, and Vilkaviškis, employing 182 highly qualified specialists who provide high-quality services. Additionally, Neodenta is a pioneer in aesthetic dentistry in Lithuania and the founder of the National Aesthetic Dentistry Association.
Orthodontic treatments offered range from complex cases handled with various bracket systems to invisible aligners, orthodontic appliances, trainers, plates, Herbst devices, orthodontic implants, and other customized solutions. The team of dentist-implantologists has significant expertise in oral surgery, bone augmentation, sinus lifting, immediate and conventional implantation, tooth extraction, and the All-on-4 method, which requires exceptional precision. Most specialists have completed postgraduate residency programs, ensuring that prosthodontics, root canal treatments, pediatric dentistry, periodontics, orthodontics, and surgical procedures are handled by top-tier professionals.
For quality treatment or preventive care, oral hygiene services are provided by carefully selected hygienists skilled in procedures such as oral cleaning and teeth whitening, as well as offering detailed consultations and addressing patient concerns. If needed, treatments can be performed under sedation or anesthesia.
“We are a modern dental clinic network offering top-quality services by combining state-of-the-art technologies, innovations, and a professional medical team. We have a clear expansion strategy focused on addressing specific service shortages across various cities in Lithuania. Our patient base is consistently growing, and the demand for modern orthodontic services is increasing. The bond issuance provides the flexibility to achieve our plans, including opening six new clinics over the next three years,” says Eglė Kunčiuvienė, founder and CEO of Neodenta.
Neodenta is a mature company with a strong financial balance, a solid reputation, and operates in the relatively low-cyclicality sector of dentistry and implantology.
“We are pleased to offer the market a public bond issue by a company in the medical field, providing a broader range of investors the opportunity to allocate their funds. These bonds could be attractive to those looking to diversify their bond portfolio” comments Mykantas Urba, Head of Corporate Finance at Orion Securities.
How to Invest?
Investment orders can be submitted through financial brokerage firms and banks. Alternatively investors can place there order request in this form or contact bonds@orion.lt
• More information (in English)
• Join investor call (in English) December 6th 2PM, Zoom platform. Register here. During this call Neodenta and Orion Securities teams will present bond issue details and answer investor questions.
Orion Securities recommends to consult with your financial advisor and evaluate all the risks associated with the financial instrument and/or other circumstances that are significant to you before making an investment decision.
