We advised AS Hipocredit, a mortgage-secured lending company on the structuring and documentation of a public offering of secured bonds. Our work included establishing the legal framework for the offering, preparing the information document and the related security package, and supporting the client throughout the transaction process in cooperation with the key stakeholders.
We helped the client to structure and complete a public offering of secured bonds by preparing the principal offering and security documents and advising on regulatory and transaction execution matters.
The offering attracted strong interest from investors across the Baltics. By the end of the subscription period subscription orders had been received, with total demand reaching EUR 8.669 million and exceeding the target issue size of EUR 8 million. Private investors accounted for approximately 80% of total demand, while institutional investors accounted for approximately 20%.
A distinctive feature of the transaction was a mechanism designed to accommodate a potential increase in the threshold applicable to an offering based on an information document from EUR 8 million to EUR 12 million following the implementation of the EU Listing Act. The offering also included tailored subscription, auction and allocation arrangements.
AS Hipocredit intends to apply for the admission of the bonds to trading on the Nasdaq Riga First North market no later than six months after the issue date.
Our team
The team was led by partner Ramona Miglāne, who also coordinated the transaction. She was supported by of counsel Mārtiņš Rudzītis on tax matters, counsel Inese Heinacka on the information document and pledge documentation, and senior associates Marika Grunte and Reinis Papulis on competition law matters. Assistant lawyer Annija Kuzma assisted with drafting, document verification and finalising the security package.
