Hepsor Raised Over 8 Million Euros in Bonds

Real estate developer Hepsor announced the results of its bond public offering, which exceeded the expected volume according to company CEO Martti Krass and confirmed investors' continued trust. A total of 1079 investors subscribed for bonds worth 8.5 million euros.

Hepsor offered a total of up to 6000 bonds to institutional and retail investors in Estonia, Latvia, and Lithuania. The three-year bond has an interest rate of 9.5% with quarterly payments. This was the first series of Hepsor's 20 million euro bond program.

The offering was participated in by 1079 investors who subscribed for bonds totaling 8.5 million euros. Thus, the first series offering's base volume of 6 million euros was oversubscribed 1.42 times. Hepsor exercised its right to increase the offering volume by 2000 bonds, which increased the total offering volume to 8 million euros. The distribution of subscriptions by country was 6.2 million euros in Estonia, 2.1 million euros in Latvia, and 0.2 million euros in Lithuania.

"I want to thank all investors who trust our vision and support our growth goals. Your trust gives us the confidence to continue implementing ambitious objectives in order to create long-term value through our real estate development projects," said Hepsor CEO Martti Krass.

According to Silver Kalmus, head of bonds at LHV Bank, which organized the emission, the issue reflected strong investor confidence in Hepsor: "During the investor roadshow, one could sense confidence in the listed company Hepsor – this is also confirmed by the group of more than a thousand investors who decided to invest in Hepsor bonds. We are particularly pleased to see the activity of Latvian investors, who subscribed for Hepsor bonds worth over two million euros. At the Latvia investor meetings, there was a positive impression that local investors and potential homebuyers welcome Hepsor as a developer of quality homes in Riga. I believe that in the context of subsequent series under the program, Latvia holds significant potential and investor interest in Hepsor bonds," commented Kalmus.

The main objective of the bond emission was to strengthen the company's capital position and refinance the LHV Bank group loan. The initial emission is part of a longer bond program aimed at supporting the financing of ongoing and new development projects in Estonia, Latvia, and Canada.

The bonds will be credited to investors' securities accounts on November 26, 2025, or around that date, and the first trading day of the bonds on the Nasdaq Tallinn exchange's Baltic bonds list will be November 27, 2025, or around that date.