Press Release: Liven Successfully Issued Green Bonds
Press Release: Subscription for Liven’s Green Bonds Has Begun (07 May 2024)
Real estate developer Liven today launched a public bond offering; this is the first public green bond issuance in Estonia. Liven has submitted an application to list the green bonds on the Nasdaq Tallinn Stock Exchange Baltic bond market, and the subscription for the bonds will last until 16 May. A seminar introducing Liven and the offering will take place on the evening of 8 May in the Liven showroom.
With the public bond offering, Liven AS intends to finance the development of both new and ongoing projects and to expand the company’s investor base. “The proceeds from the green bonds will be used by Liven only to finance developments where the buildings are designed and constructed to be as future-proof as possible and to take environmental impacts into account, and which therefore obtain an international LEED or BREEAM certificate, or achieve energy efficiency higher than that of a nearly zero-energy building,” said Andero Laur, CEO of Liven AS.
Within the framework of the issuance, Liven intends to raise up to 4 million euros; in the case of oversubscription, Liven has the right to increase the offering volume up to 7 million euros. The nominal value of one bond is 1,000 euros and the maturity date of the bonds is 23 May 2028. The bonds have a fixed interest rate of 10.5% per year and quarterly interest payments. The subscription period began on 7 May at 10:00 and ends on 16 May at 16:00. The bonds are offered publicly only in Estonia.
“Until now, Liven has used loan capital only on a project basis through the group’s project companies. This time, we are raising loan capital for the first time through the parent company Liven AS. In this way, we can expand our investor base and create opportunities for more flexible use of capital within the group. Transparency and reliability of Liven are important to us, which is supported by a public bond offering,” said Andero Laur, CEO of Liven AS.
Liven’s development portfolio includes 10 projects with a volume of nearly 1,500 new homes. Homes are for sale and under 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 also expanded to the German market, and during 2024 it is planned to start the pre-sale and construction of the first project located in Berlin. In addition, four development projects are planned in Tallinn. In total, Liven’s development portfolio includes over 115,000 m² of sellable space, which ensures a stable development volume for the coming years.
The bond issue of Liven AS is organised by LHV Bank, whose representative Silver Kalmus stated that Liven AS has earned the trust of Estonians by building homes in cooperation with the future owner and taking into account the client’s wishes and needs. The bond issue gives investors the opportunity to share this trust and take part in Liven’s success.
“I am pleased that Liven is the first Estonian company this year to organise a public bond offering and to list the securities on the regulated market of Nasdaq Tallinn for trading for Baltic investors. In the case of Liven, it is a reputable issuer, and the addition of their bonds on the exchange enlivens capital markets and increases trading activity in bonds. The issuance of green bonds confirms the company’s importance in promoting environmental sustainability, as the capital raised may be used by Liven to finance projects that comply with Liven’s sustainable financing framework, which has been reviewed and approved by the international independent rating agency S&P Global Ratings,” said Silver Kalmus, Head of Bonds at LHV Bank.
Liven is organising a seminar introducing the company and the green bond offering on 8 May at 18:00 in its showroom located in Telliskivi. Registration is required at www.liven.ee/investor.
Liven AS is a residential real estate developer established in 2014 and operating mainly in Tallinn. During the company’s ten years of operation, more than 700 homes have been created and nearly 1,500 homes are in preparation. According to Kantar Emor’s real estate brand awareness and reputation studies, Liven has for years been among the two most reputable developers in Estonia.
Liven focuses on creating homes, and the company’s strength and differentiation lie in homes designed together with homeowners, well-thought-out layouts and the offering of built-in furniture. Liven is valued by homebuyers for the most attractive developments and is described as a stylish trendsetter with modern architecture.
This notice is not to be considered an offer to sell or an invitation to acquire bonds, nor will any sale or offering of bonds take place in any jurisdiction in which such offer, invitation or sale would be unlawful prior to the approval or registration of a prospectus or without exemptions or qualifications contained in the law.
The detailed terms of the offering and the prospectus have been published on the website: www.liven.ee/investor