Press Release: Liven Issues Green Bonds
Press Release: Liven Begins Subscription for Green Bonds (07.05.2024)
Real estate developer Liven has launched a public offering of bonds today, marking the first public green bond issuance in Estonia. Liven has submitted an application for the green bonds to be listed on the Nasdaq Tallinn Stock Exchange’s Baltic Bond Market, and the subscription period will last until May 16. A seminar introducing Liven and the offering will take place on the evening of May 8 at Liven’s showroom.
The public bond offering is intended to finance the development of both new and ongoing projects, as well as to expand the company’s investor base. “The proceeds from the green bonds will be used solely to finance developments where buildings are designed and constructed to be as future-proof and environmentally conscious as possible, and as a result, obtain an international LEED or BREEAM certification or achieve higher energy efficiency than near-zero energy buildings,” said Andero Laur, CEO of Liven AS.
Through this issuance, Liven aims to raise up to 4 million euros. In case of oversubscription, Liven reserves the right to increase the offering amount to up to 7 million euros. The nominal value of one bond is 1,000 euros, and the maturity date of the bonds is May 23, 2028. The bonds offer a fixed interest rate of 10.5% per annum with quarterly interest payments. The subscription period began on May 7 at 10:00 AM and will end on May 16 at 4:00 PM. The bonds are offered publicly only in Estonia.
“Until now, Liven has used loan capital on a project-by-project basis through the group’s project companies. This is our first time raising loan capital through the parent company, Liven AS. This allows us to expand our investor base and create more flexibility in capital utilization within the group. Transparency and reliability are important to us, and the public bond offering supports that,” said Andero Laur, CEO of Liven AS.
Liven’s development portfolio includes 10 projects, with nearly 1,500 new homes under development. Homes are currently available for sale and construction in five developments: Magdaleena, Uus-Meremaa, Luuslangi, Iseära, and Regati. The estimated sales volume of Liven’s entire development portfolio is 375 million euros.
In 2023, Liven expanded to the German market, and in 2024, it plans to start pre-sales and construction of its first project in Berlin. Additionally, four development projects are planned in Tallinn. Overall, Liven’s development portfolio exceeds 115,000 m² of saleable area, ensuring a stable development volume for the upcoming years.
Liven AS’s bond issuance is being organized by LHV Pank. According to LHV representative Silver Kalmus, Liven has earned the trust of Estonians by building homes in collaboration with future owners and considering their wishes and needs. The bond offering provides investors with an opportunity to share in that trust and participate in Liven’s success.
“I’m pleased that Liven is the first Estonian company this year to offer public bonds and list the securities on the Nasdaq Tallinn regulated market for trading by Baltic investors. Liven is a reputable issuer, and the addition of their bonds to the stock exchange will invigorate the capital markets and increase trading activity in bonds. The issuance of green bonds highlights the company’s importance in promoting sustainability, as the capital raised will finance projects that comply with Liven’s sustainable finance framework, which has been reviewed and approved by the independent rating agency S&P Global Ratings,” said Silver Kalmus, Head of the Bond Market at LHV Bank.
Liven will host a seminar introducing the company and green bonds on May 8 at 6:00 PM at its showroom in Telliskivi. Registration is required at www.liven.ee/investor.
Liven AS, established in 2014, is a residential real estate developer primarily operating in Tallinn. Over its ten years of operation, the company has created over 700 homes and is preparing nearly 1,500 homes. According to Kantar Emor’s real estate brand recognition and reputation surveys, Liven has consistently been one of Estonia’s two most reputable developers.
Liven focuses on creating homes, and the company’s strength and distinction lie in designing homes together with homeowners, offering thoughtful floor plans, and providing custom furniture. Liven is highly regarded by homebuyers for its attractive developments and is described as a trendsetter with stylish, modern architecture.
This announcement should not be considered as an offer or invitation to purchase bonds, nor is the sale or offering of bonds taking place in any jurisdiction where such an offer, invitation, or sale would be illegal prior to the approval or registration of a prospectus, without exceptions or qualifications under the law.
The detailed terms of the offering and the prospectus are published on the website: www.liven.ee/investor