Hepsor raises over €8 million through bond issue

Property developer Hepsor has announced the results of its public bond offering, which exceeded expectations and, according to CEO Martti Krass, reaffirmed investors’ continued confidence. A total of 1,079 investors subscribed to the bonds for €8.5 million.

Hepsor offered up to 6000 bonds to institutional and retail investors in Estonia, Latvia, and Lithuania. The three-year bonds carry an interest rate of 9.5%, with quarterly payments. This was the first series issued under Hepsor’s €20 million bond programme.

A total of 1079 investors participated in the offering, subscribing for bonds in the total amount of 8.5 million euros. Therefore, the base volume of the first series of the offering in the amount of 6 million euros was oversubscribed by 1.4 times. Hepsor exercised its right to increase the volume of the offering by 2,000 bonds, as a result of which the total volume of the offering increased to 8 million euros. Subscriptions by country: €6.2 million from Estonia, €2.1 million from Latvia, and €0.2 million from Lithuania.

“I would like to thank all investors who trust our vision and support our growth objectives. Your trust enables us to continue pursuing ambitious goals and creating long-term value through our real estate development projects.” said Hepsor’s CEO Martti Krass.

According to Silver Kalmus, Head of the Bond Division at LHV Bank, the issuance reflected strong investor confidence in Hepsor: “During the investor roadshow, there was a clear sense of trust in the listed company Hepsor – this is confirmed by the circle of more than one thousand investors who decided to invest in Hepsor’s bonds. I am especially pleased to see the activity of Latvian investors, who subscribed for more than two million euros worth of Hepsor bonds. At the investor meetings in Latvia, we were left with a positive impression that local investors and potential homebuyers welcome Hepsor as a developer of high-quality homes in Riga. I believe there is significant potential in Latvia in the context of upcoming series under the programme, as well as continued investor interest in Hepsor’s bonds,” Kalmus commented.

The primary objective of the bond issue was to strengthen the company’s capital position and refinance a group loan from LHV Bank. The initial issue is part of a broader bond programme aimed at supporting the financing of ongoing and upcoming development projects in Estonia, Latvia, and Canada.

The bonds will be transferred to investors’ securities accounts on November 26, 2025 or on a date close to it, and, the first trading  day of the bonds on  the Nasdaq Tallinn Stock Exchange Baltic Bond List will be 27 November 2025 or a date close to it.