Estonia, EU – Baltic States, Investments, Markets and Companies, Textile

"The bond is just one part of it, actually we are financing it mainly with a bank loan. One-third of the sum total came through the bond. The weighted average rate is in the region of seven percent," Rahumaa told Postimees.

Rahumaa ascribed the borrowing cost to the limited financing environment of the Baltic countries.

"If the whole business was in one country, this could have been financed with four percent. But the different sides do not recognize sureties in other countries," he said.

"We are working towards making financing cheaper. Among other things, we are planning to list in the future," Rahumaa said.

He added that the company was "working towards refinancing."

Besides, the size of the investment was inconvenient for banks, according to Rahumaa.

"EUR 30 million, which was too much for our local banks, is a negligible amount for the large London based banks. Had the investment been in the range of EUR 50–100 million the circle of investors would have been much bigger and cheaper," he said.

Lauma International acquired the German lingerie manufacturer and distributor Felina in mid-June.

Lauma executives have said that with the acquisition of the German lingerie group Lauma International intends to expand its operation, creating a new vertically integrated group that will be generate more than EUR 75 million in consolidated annual revenue and employ 1,250 people. They also said the new group will be able to serve as a basis for further market consolidation.

Lauma International acquired 100 percent of the shares in Felina International from Palero private equity fund.

The deal was financed by a consortium of Citadele Bank and Baltikums Bank, operating under the BlueOrange brand, under the leadership of Citadele. Estonia's LHV Pank provided advice to Lauma International. The value of deal has not been publicly disclosed.