Sorainen advised Baltic Horizon Fund, managed by Northern Horizon Capital, in listing its 5-year unsecured bonds on Nasdaq Baltic Bond List. The bond issue with a total value of EUR 30 million was a private placement carried through in spring 2018 and the Baltic institutional investors, mainly pension funds, asset managers, insurance companies and banks, subscribed it. Proceeds from the bonds will be used for refinancing of loans and for general corporate purposes, including investment activities.
“After the bond issue, the fund now has a more diversified capital structure and better access to different sources of capital: equity, bank loan, and bonds. We will use the proceeds from the bond issue to refinance a portion of our existing bank loans,” said Tarmo Karotam, the Fund Manager at Baltic Horizon Fund, in a press release. “In addition to the 30 million euros we raised via this bond offering, we have raised 77 million euros from investors since our initial listing in 2016. The fund’s gross asset value has increased from 90 million to 250 million euros during these two years.”
Sorainen advised the client throughout the transaction by drafting the listing prospectus, providing disclosure advice and representing the client in communication with the Estonian Financial Supervision Authority and Nasdaq Tallinn. Sorainen team was led by Sorainen Estonia partner Reimo Hammerberg and senior associate Kätlin Hein.