Property Developer Invego Plans to Offer Bonds and Make Them Publicly Tradable
Invego, one of Estonia's largest real estate development companies, announced that it plans to conduct its first public bond offering this spring and subsequently add the company's bonds to the trading list of Nasdaq Baltic's First North bond market.
In cooperation with LHV bank, the bond offering under preparation will have its volume, interest rate, and other detailed terms disclosed in early May as planned. The offering directed at Baltic retail investors is scheduled to be completed during the spring of 2025.
Operating in three countries with more than 30 development projects, Invego intends to use the funds raised through the offering to provide additional financing for the group's real estate development projects in Latvia. This is the next stage of the company's strategic expansion, aimed at strengthening Invego's position in the Latvian real estate market.
"With more than 10 years of experience, Invego has proven its ability to successfully create comprehensive residential and business environments whose value grows over time. Today is the right time to support expansion in the Latvian market, where we see significant growth potential. Our experience in Riga demonstrates that real estate there is currently more affordable compared to Tallinn, demand is greater, and customers' expectations for improved living standards are growing rapidly," said Invego's CEO Kristjan-Thor Vähi. "We are already selling more homes in Latvia this year than in Estonia. We want to bring our Estonian experience and success model to the Latvian market as well."
According to Vähi, planning processes in Riga proceed significantly faster, which allows capital to be kept working more efficiently. "Our goal is to achieve EUR 300 million in sales revenue in Latvia over 5 years, for which we have already assembled a strong development portfolio of over 3,000 homes. The bond offering will help us realize this ambitious plan and offer investors a share in Invego's growth story."
To date, Invego's development portfolio in Latvia includes 12 projects distributed across different districts of the city and target groups, of which sales have already begun for six and six are in active development phase. The Latvian development portfolio contains a total of over 291,000 square meters of developable land and more than 3,000 homes, providing strong and consistent development volume for the coming years.
"Invego stands out with its experienced management team and strategic approach to development projects, where locations are carefully selected and architectural competitions are organized to find the best solutions. The planned bond offering gives investors the opportunity to invest in a company that shapes modern and quality urban space and has repeatedly proven its ability to implement profitable development projects," noted Silver Kalmus, head of the bonds division at LHV bank.
About Invego
With more than 10 years of operational history, Invego is one of Estonia's leading real estate development companies, currently working on nearly 30 development projects in three countries. In Tallinn and its surroundings, more than 1,300 homes and over 50,000 m2 of commercial space have been built in recent years. In Estonia, Invego's largest developments include the recently completed Tiskreoja and Tabasalu Kodu residential areas, and the currently ongoing Luccaranna, Uus-Järveküla, and Keila Pargikodude residential areas.
In the Latvian capital, the company is developing the Vitolu Parks residential area and, together with Reterra, the Parka Kvartals, Skanstes Rezidences, and Miera Rezidences residential areas. In close proximity to Riga, Invego is developing the Vide Adaži row house residential area and the large-scale Marupes Sirds residential area in Marupe.
In southern Portugal, Invego is working on the Silves Hills development project spanning 65 hectares with 154 villas.
