Hepsor, a real estate developer whose shares are listed on the Nasdaq Baltic Main List, plans to launch a new bond issue in the final week of August under its EUR 20 million bond programme.

According to Martti Krass, CEO of Hepsor, the capital raised will be used to finance ongoing development projects and pursue new investment opportunities. The new financing round comes at a time when Hepsor’s construction activity and pre-sales have both reached record levels, increasing by 101% and 39% year-on-year, respectively.

“We are seeing a significant increase in demand for new apartments in Tallinn and Riga. We currently have 513 homes under construction, and this year we plan to start the construction of two additional residential buildings with 119 apartments. We are open to new opportunities for residential real estate development, and bond financing supports the continued growth of our development portfolio. This allows us to react quickly in situations where launching new projects and initiating the next phases of existing developments requires capital,” said Krass.

The proceeds from the planned bond issue will help the company complete its current projects under construction while continuing to expand its development portfolio with new projects.

In November 2025, Hepsor raised EUR 8 million from investors through the first series issued under the same bond programme. The base volume of the issue was 1.4 times oversubscribed, with 1,079 investors from Estonia and Latvia participating. To date, nearly 10,000 investors have invested in Hepsor through its shares and bonds.

The new issue is planned for the last week of August. Hepsor will announce the exact terms and volume of the offering separately shortly before the subscription period begins. The prospectus and its supplement will be published on the websites of the Estonian Financial Supervision and Resolution Authority, Nasdaq Tallinn and Hepsor after the prospectus supplement has been approved. The bonds are intended to be admitted to trading on the Nasdaq Baltic Bond List.

During its 15 years of operation, Hepsor has developed more than 2000 homes and nearly 44 000 square metres of commercial space in Estonia and Latvia. In the near term, the company’s focus is on developing new homes in Tallinn and Riga. Hepsor also operates in Canada, where the initial objective of its projects is to obtain the necessary planning approvals and thereby increase the permitted development volume.

By the end of the third quarter of 2026, Hepsor plans to complete the next stage of the Manufaktuuri Quarter development in Tallinn. The building at Manufaktuuri 12 will comprise 49 apartments, 27 of which have already been sold under contracts governed by the law of obligations. In Riga, a residential building woth 103 apartments at Dzelzavas 74C is scheduled for completion in the fourth quarter, with 42 apartments already pre-sold.

The company is also preparing for the construction of three new projects. In Peetri, construction will commence on the Veski Centre, which will provide 3551 square metres of leasable space. Of this, 97% is already covered by lease agreements. At the Starta iela 17 property in Riga, 255 new homes are planned to be developed in several stages, while the second stage of the Braila iela 23 development will comprise 35 homes.

Hepsor is also continuing to search for new development properties. In July, the Group entered into a preliminary agreement to acquire the properties at Meža iela 6 in Riga, where it plans to develop a residential building with 48 apartments. In addition, more than 400 homes will be developed in the Veidama Quarter at Ganību dambis 17A in Riga. Following a change to the development concept, apartment buildings will be constructed instead of stock-office-type commercial properties. Construction of both developments is scheduled to begin in the second half of 2027.

This announcement is intended for information purposes only and refers to a potential offering that may take place in the future. It should not be regarded as an offer to sell bonds or as investment advice. No sale or public offering of the bonds will take place in any country or jurisdiction before the relevant prospectus or other required offering document has been duly approved, registered or published in accordance with applicable law.