Vanagas Asset Management launches the second tranche of Its 9.5% yield bond issue

Vanagas Asset Management is part of the broader Vanagas Group, which owns well-known companies in Lithuania such as Citus, Demus Asset Management, Oxygen, and Profitus.

“Our Vanagas Asset Management group of companies has always been characterised by ambition and creativity, so we are constantly looking for additional opportunities that would not only contribute to diversifying financing solutions, but also accelerate the group’s growth. We have decided to issue bonds as we see excellent opportunities to strengthen Vanagas Asset Management’s position in the market by acquiring new real estate projects for development and attracting investors who share our vision of creating innovative and cosy homes for all. The funds raised from the first tranche have already been successfully invested: EUR 2.2 million was allocated for the acquisition and development of plots in the Vilnius districts of Šnipiškės, Fabijoniškės, and two plots in Naujamiestis, and EUR 1.2 million for construction works in ongoing projects – ‘Nemunas by Citus’, ‘Mūnai by Citus’, ‘Ežero takais by Citus’, ‘Kaip Niujorke by Citus’, and ‘Senamiesčio link by Citus’. Continuing our investment programme, we are returning to the capital market with the second tranche offering,” says Mindaugas Vanagas, founder of Vanagas Group and Citus.

The funds raised will be used to partially finance the issuer’s ongoing and planned real estate development projects in Vilnius, as well as to finance the company’s working capital, including short-term lending to the company’s project companies.

“We plan to finance the redemption of the bonds from funds generated by the sale of apartments in the real estate projects currently under development in Vilnius: ‘Kaip Niujorke by Citus’, ‘Ežero takais by Citus’, ‘Senamiesčio link by Citus’, and ‘Mūnai by Citus’. Given our company’s stable financial position, the bonds on offer can provide investors with an attractive risk-return profile. At the end of 2024, Vanagas Asset Management’s consolidated equity exceeded EUR 32 million, and the consolidated equity-to-assets ratio was above 87%,” says Raimundas Lukoševičius, CFO of Vanagas Asset Management.

The bond placement will start on 11 August and will continue until 29 August at 15:30. Both private and institutional investors can participate by submitting investment orders through banks and brokerage firms. Bond subscription orders will be satisfied on a first-come, first-served basis. The offering is organised and executed by Orion Securities, with TEGOS Legal acting as legal advisers.

Bonds secured by project company shares

The bonds will be secured by a first-ranking pledge over the shares of the issuer’s project companies, with a commitment that throughout the term of the bonds, the ratio of the nominal value of the bonds issued to the net value of the pledged shares will not exceed 0.5 (i.e., the collateral value must be at least twice the bond obligation). In addition, receivables from the parent company Vanagas Group UAB will be pledged in favour of investors.

“During the placement of the first tranche, the issuer successfully attracted EUR 3.4 million in investments. We believe that investors will continue to value Vanagas Asset Management’s long-standing experience in real estate development, strong capital structure, and attractive security measures,” comments Mykantas Urba, Head of Investment Banking at Orion Securities.

Extensive experience in real estate investment

The company has developed or is developing a total of 25 projects, with a combined completed real estate area exceeding 180,000 m². It operates in Lithuania’s largest cities – Vilnius and Kaunas – as well as in smaller, highly sought-after resort towns such as Druskininkai and Nida.

How to invest?

Contact your financial brokerage firm or bank managing your securities account to place an investment order. If you do not have an investment services agreement with a financial intermediary operating in Lithuania, Estonia, or Latvia, leave your contact details in the provided form and an Orion investment consultant will contact you, or email obligacijos@orion.lt.

More information: https://www.orion.lt/vanagas-asset-management-obligacijos/

Join investor call

Interested investors are invited to participate in online presentations of this investment, where representatives of Vanagas Asset Management and Orion Securities will present the project details and answer investor questions:

• 14 August at 10:00 [Presentation in Lithuanian] Registration link
• 14 August at 14:00 [Presentation in English] Registration link

Orion Securities recommends consulting your financial adviser before making any investment decision and assessing all risks and other relevant circumstances related to the financial instrument.