We advised Modus Group in launching a second public bond issue planned to attract investment of EUR 8 million.
Funds will be used to refinance the EUR 5 million bonds issued three years ago and to finance renewable energy projects as well as development of sustainable mobility services. The bond issue is planned in two phases: the first will last 3 weeks and is expected to raise EUR 5 million. Investors will be offered a 5% annual interest rate.
The bonds are being distributed by Šiaulių bankas and are planned to be traded on First North, an alternative market administrated by quoted stock-exchange market Nasdaq.
Development of green energetics & mobility investments
According to Erika Zakarauskienė, Head of Finance at Modus Group, the first public bond issue proved to be an attractive tool for private and institutional investors to indirectly contribute to the development of renewable energy sources in the region and to obtain a sustainable return on investment. Part of the funds raised in the second issue will be used to refinance the first bonds as well as for investments in green energy and advanced mobility technologies.
Last year, 99% of all group investments were allocated to the green energetics and mobility business. In total, the group has invested almost EUR 136 million in renewable energy projects in Europe, where EUR 21 million of the sum invested was allotted to the group’s sustainable mobility business.
Modus Group is a group of companies managing renewable energy, mobility services, car trading and other businesses. In 2019, Modus Group generated EUR 56.8 million in EBITDA – 3 times more than in 2018.
Our services and project team
We contributed to preparing the information document for the public offering, and assisted in preparing documents for distribution and admission of bonds to trading on the First North Nasdaq Vilnius alternative market.
The project team was led by senior associate Dalia Augaitė with associate Rimantas Bendorius.