Vanagas Asset Management Launches the Third Tranche of Its 9% Bond Issue
The investment holding company UAB Vanagas Asset Management, which finances real estate development, began distributing the final tranche of its €8 million bond issue on October 28. The value of this tranche is €800,000. Investors are offered a 9% annual yield. The bonds will be redeemed on October 29, 2027, with interest paid semi-annually. The minimum investment amount is €1,022.87.
Vanagas Asset Management is part of the broader Vanagas Group, which owns well-known companies in Lithuania: Citus, Demus Asset Management, Oxygen, and Profitus.
“The first two tranches of the €8 million bond issue performed better than planned, so only a small amount remains for the third tranche. Seeing investor confidence, we are looking to raise the remaining amount to achieve our goals and further strengthen the group’s position. The total amount raised during previous placements has already been allocated: approximately €3.9 million for acquisition and development of new land plots, and €3.3 million for financing construction of existing projects.” says Mindaugas Vanagas, founder of Vanagas Group, Citus, and Demus.
“We are currently developing 8 projects in Vilnius, Kaunas, Druskininkai, and Nida, and by 2027 we plan to launch at least 10 more. This year, we have already acquired or are finalizing negotiations for sites that could accommodate more than 1,600 apartments, totaling nearly 90,000 sq. m. If negotiations are successfully completed, our goal for the year is to secure land allowing for the development of around 2,400 apartments,” says M. Vanagas.
The funds raised will be allocated to partially finance the issuer’s ongoing and planned real estate development projects in Vilnius, as well as to support the company’s working capital, including short-term lending to project companies.
“We plan to finance bond redemption using proceeds from apartment sales in our ongoing real estate projects in Vilnius: Mūnai by Citus, Kaip Niujorke by Citus, Miesto akordai by CITUS, Senamiesčio link by Citus, and CITUS Sãva.
Considering the stable financial position of our company, we believe these bonds offer investors an attractive risk-return profile,” says Raimundas Lukoševičius, CFO of Vanagas Asset Management.
The bond offering began on October 28 and will continue until November 14 at 15:30. Both private and institutional investors may participate by submitting subscription applications through banks and brokerage firms. Applications will be satisfied on a first-come, first-served basis. The bond placement is organized and executed by Orion Securities, legal advisors – TEGOS Legal.
Bonds Secured by Shares of Project Companies
The bonds will be secured by a first-ranking pledge of shares in the issuer’s project companies, with an obligation to maintain, throughout the bond term, a ratio between the nominal value of issued bonds and the net value of pledged shares not exceeding 0.5 (i.e., the collateral value must be at least twice the bond obligation). Additionally, receivables owed to the issuer by the parent company Vanagas Group will be pledged in favor of investors.
“During the previous tranches, the issuer successfully raised €7.2 million. We believe investors will continue to value Vanagas Asset Management’s long-standing experience in real estate development, solid capital structure, and the security package offered,” comments Mykantas Urba, Head of Investment Banking at Orion Securities.
The company’s consolidated equity exceeds €30 million, and the consolidated equity-to-assets ratio in the first half of 2025 was above 80%.
Extensive Experience in Real Estate Investment
Vanagas Group covers the full real estate development cycle: from land acquisition and design to raising investment, construction, sales management, and administration. This structure enables rapid conversion of capital into development while ensuring risk control through phased project delivery, geographic diversification, and financial flow management.
The group’s companies are distinguished by the development of unique real estate projects, including innovation-based spaces, multifunctional conversion properties, and residential real estate.
The company’s total number of completed and ongoing projects reaches 25, with a total developed area exceeding 180,000 sq. m. The company develops projects in Vilnius and Kaunas, as well as in high-demand resort towns – Druskininkai and Nida.
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
Join investor call
We invite investors to join the remote bond issue presentation in English, November 6, 2025, at 2 PM. Registration link.
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.
