2017-05-30

2017-05-30

Civinity will issue bonds

AB Civinity, a group consisting of housing and commercial property administration companies in Baltic countries, is issuing up to €10 million worth of bonds with an up to €5 million bond issue offered in the first stage. Among the company's plans is further development and consolidation of its market positions. The company has also announced its financial results with a 57 percent growth in profit and a 53 percent increase in income recorded last year.

“Our main long-term goal is consistent development and growth of the company group. We began the year with a successful start in Latvia by acquiring another company in late April and are constantly looking for new investment opportunities, monitoring and assessing the market situation. In Lithuania our goal is to reinforce our positions in the housing administration sector, while in Latvia we aim to maintain the position as the market leader. After the bond issue we plan to continue investing in the development of the housing market by increasing our market share in Lithuania and Latvia and launching investments in Estonia as well as expanding our service portfolio offered to our clients. We plan several investments in CEE countries if favourable conditions arise,” says chairman of the board of Civinity Vitoldas Sapožnikovas.

According to Sapožnikovas, the improvement of service quality, the application of current technologies and the optimization of management processes are all components of the building administration service. Smaller market players are unable to do this due to limited financial resources; therefore, the successful consolidation of companies and further development would allow to continue increasing the market share and providing customer-oriented services.

The bonds will be issued in a public offering in accordance with the company’s Base Prospectus on the public offer of bonds and their listing on AB Nasdaq Vilnius stock exchange. Up to €5 million worth of bonds are to be issued during the first stage until the end of June. In case of a favourable market situation later on and if the company wants to attract additional investment funds, another issue of up to €5 million bonds may be offered in a public issue within a 12 month period.

“At the forefront of our last year's goals we had the expansion of the company group, which we have been pursuing single-mindedly through our acquisition of three existing building administration companies in the Latvian market. It has allowed us to achieve a significant increase in both income and profit compared to 2015,” states Sapožnikovas.

Company group's income in 2016 was €23.86 million and was 53 percent higher than in 2015; meanwhile, net profit was €1.104 thousand and had increased by 57 percent compared to 2015. The number of group's employees has more than quadrupled since 2015 and now totals 1400.

In 2016, the total area of the buildings administrated by the group comprised 4.835 million square meters. This was more than a 52 percent increase compared to 2015.

Civinity company group owns the following Lithuania-based housing administration companies: Senamiesčio Ūkis, Ozo Miestas, Būsto Valda, Debreceno Valda, Viltės Valdos, Klaipėdos Bendrabutis, Palangos Butų Ūkis, Kretingos Būstas, as well as the following Latvia-based housing and commercial property administration companies: AS Hausmaster, SIA CS Komercserviss, SIA Home Master, SIA Labo Namu Agentūra, SIA Jūrmalas Naimsaimnieks and others.

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This release is intended solely for informational purposes and in no way should be referred to as the basis for deciding to invest in the stock of AB Civinity (Company). On 29th May 2017 the Company announced the Base Prospectus approved by the Bank of Lithuania for its offering program regarding a public offering of up to €10 million bonds and their listing on AB Nasdaq Vilnius, as well as the final offering terms and conditions for the 1st stage of the programme (up to €5 million bonds), and these documents are the only legally binding documents providing information about the Company and its public bond offering in Lithuania.

The base prospectus, stage 1 final terms and conditions and other documents can be found on Company's website (www.civinity.eu) and the website of the offering arranger UAB FMĮ Orion Securities (http://orion.lt).