Medical clinics network InMedica has started a new distribution of bonds, during which it will seek to borrow up to EUR 8 million for a period of 2 years.
InMedica’s bonds are offered to private and institutional investors, who will be paid a 5% annual interest rate. The issue is being launched to refinance the previous issuance of EUR 5 million. The remaining funds will be used to finance the acquisition of new clinics and organic development.
“Even though the pandemic has brought a lot of uncertainty to the market, we clearly see growing potential in the healthcare sector. This led to the decision to continue with ambitious expansion plans and to develop new projects that require additional investment. We appreciate the investors’ confidence and we are confident that by effectively investing new funds, we will be able to create value for all stakeholders: bond investors, our shareholders, and, of course, patients,” said Kęstutis Broniukaitis, CEO of InMedica.
According to InMedica’s CEO, the pandemic has highlighted the growing demand for medical services which opens up new development opportunities for medical institutions.
“At the moment, InMedica’s main focus is on improving the quality and accessibility of services provided to patients; hence, the funds will be used to develop new clinics, purchase modern equipment and attract the most professional specialists. This will allow us to consistently increase the efficiency of our clinics and successfully adapt to the changes dictated by the market,” emphasized Mr. Broniukaitis.
According to Domas Klimavičius, head of investment services group of Šiaulių bankas – the distributor of the bonds – “This is the second bond issue by the issuer. The successful first distribution has built investor confidence, and thus, the interest in bonds of this network of medical clinics is high. It is noteworthy that the local bond market is dominated by players in the real estate sector, which makes the InMedica’s bond security an excellent tool for diversifying a bond portfolio”.
In total, investors can buy up to 80 thousand units of company bonds. The nominal value of one bond is EUR 100. Starting from December 8th, 2021, the public bond issue of the company is distributed by Šiaulių bankas. The end of the distribution is set for 2021 December 16th at 12 p.m. GMT+2. The newly issued securities will be included in the alternative stock market First North, administered by Nasdaq Vilnius. Sorainen & Partners has been selected as a certified advisor to the bonds.
With a network of 34 clinics in several cities, InMedica is one of the largest private medicine centres in Lithuania. InMedica provides diagnostic, outpatient, surgery, dentistry and other medical services. InMedica group consists of 21 family medicine centres, 4 broad-profile, 1 specialized cardiology clinic, 6 walk-in clinics and 3 laboratories.
InMedica group has more than 1000 employees and provides healthcare services to more than 100,000 registered patients. In 2020 the Group received revenue of EUR 18.0 million. Since February 2019, 70% of the shares of InMedica are owned by INVL Baltic Sea Growth Fund, one of the largest private equity investment funds in the Baltic States, through its subsidiary BSGF Sanus.
About INVL Baltic Sea Growth Fund
INVL Baltic Sea Growth Fund with its total size of EUR 165 million is one of the largest private equity funds in the Baltics with the European Investment Fund (EIF) acting as its anchor investor. The EIF, which is a part of the European Investment Bank, has committed EUR 30m with the support of the European Fund for Strategic Investments, a key element of the Investment Plan for Europe (or the ‘Junker Plan’), as well as allocating resources from the Baltic Innovation Fund, the “fund of funds” initiative developed in cooperation with the governments of Lithuania, Latvia and Estonia. This aims to increase capital investment in high growth potential small and medium-sized enterprises in the Baltic States.
The Fund seeks to assemble a diversified portfolio of companies, targeting majority or significant minority stake deals and writing tickets of EUR 10 million to 30 million, that showcase high growth potential and the ability to compete on a truly global basis. The Fund is focused on the Baltic States and the neighbouring regions of Poland, Scandinavia and Central Europe specifically. The Fund so far has invested in four companies within the healthcare, civil engineering and environment management (plastic recycling and waste management) sectors respectively.
The Fund is managed by one of Lithuania’s leading asset management companies INVL Asset Management, which is part of the Invalda INVL group. The group’s companies manage pension and mutual funds, alternative investments, individual portfolios, private equity assets, and other financial instruments. Over 200,000 clients in Lithuania and Latvia and international investors at the end of 2019 have entrusted the group with more than €1.5bn of assets under management. Active since 1991 and with a solid track record, Invalda INVL boasts 30 years of experience in managing private equity assets in the Baltic countries and CEE landscape while developing companies into best-in-class market leaders.