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International Internet Magazine. Baltic States news & analytics Friday, 29.05.2020, 03:17

Estonia: Nortal raises EUR 50 mln in bond issue

BC, Tallinn, 29.05.2019.Print version
Tallinn-based international software and business consulting company Nortal has concluded a 50-million-euro bond issue to bolster its expansion efforts and refinance an existing bond, Nortal announced on Wednesday.

The issue, with five-year maturity and a 4.75% coupon rate, will pay interest semi-annually.

Priit Alamae, founder and CEO of Nortal, said the bond issue is the largest for Nortal to date and was mainly subscribed by renowned institutional investors. Seventy-five percent of demand for the bonds came primarily from institutional investors from Finland, Sweden and Norway, and 25% from investors and pension funds from Latvia, Estonia and Continental Europe.

The bond proceeds of 50 million euros will be used to refinance an existing bond and for general corporate purposes, allowing Nortal to continue accelerating growth through tactical acquisitions in existing markets. 

"Success of this bond issue, active interest by investors and a coupon rate of 4.75% is a testament of Nortal's good reputation with the investor community and a strong sign of confidence and trust," Alamae said.

"I'm especially glad to see the bond issue so warmly welcomed in one of our most important home markets -- the Nordics," the CEO added.

In the past years, Nortal has been growing fast in employee numbers and revenue as well as expanding geographically. In 2018, the company acquired Dev9, a Seattle-based software engineering consultancy specializing in cloud modernization, and has invested in building a strong presence in Germany.

For the bond issue, Pareto Securities acted as global coordinator and bookrunner, Redgate Capital as a local manager, and the trustee agent is Nordic Trustee Oy.

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