Hepsor’s second bond offering oversubscribed 2.4 times

The second series of real estate developer Hepsor’s € 20 million bond programme was strongly oversubscribed. A total of 974 investors from Estonia, Latvia and Lithuania subscribed for bonds in the total amount of € 7.1 million.

Hepsor offered 3000 bonds with a nominal value of € 1000 per bond, bringing the base volume of the offering to € 3 million. The three-year bonds bear a fixed interest rate of 9.5% per annum, with interest payments made quarterly. As the base volume of the offering was oversubscribed 2.4 times, Hepsor increased the total volume of the offering to € 5 million. Investors subscribed for bonds in the amount of € 5.8 million in Estonia, € 0.9 million in Latvia and € 0.3 million in Lithuania. This was the second series of Hepsor’s € 20 million bond programme.

According to Martti Krass, CEO of Hepsor, the bond issue gives the company greater flexibility to finance ongoing development projects and make new investments in Estonia and Latvia. The capital raised will allow Hepsor to continue investing at a time when its construction activity has reached a record level and to respond more flexibly to new development opportunities.

“We are currently at the peak of our investment cycle, with many projects under construction simultaneously and pre-sales growing. We are very grateful for the trust investors have placed in us. The capital raised enables us to move forward successfully with our investments and pursue new acquisitions that support Hepsor’s continued growth,” Krass said.

Silver Kalmus, Head of Debt Securities at LHV Pank, said he was pleased that investors from all three Baltic countries, including institutional investors, participated in the second series of Hepsor’s € 20 million bond programme. “Hepsor is a recognised real estate developer in Estonia and Latvia, with an experienced team and a strong development portfolio. The results of the bond offering demonstrate investors’ confidence in the company’s track record and future plans,” Kalmus said.

The bonds are expected to be transferred to investors’ securities accounts on or around 11 September 2026, and the first trading day for the bonds on the Nasdaq Tallinn Baltic Bond List is expected to be on or around 14 September 2026.