InMedica, a network of healthcare clinics, has finished the first round of a bond issue to investors successfully placing EUR 3 million of bonds at an annual interest rate of 5.5% and the maturity date of 16 December 2021 (bonds take effect as of 16 December 2019).
A total of EUR 5 million is expected to be raised through the bond distribution organized by Šiaulių Bankas AB. The second stage of the bond issue will finish on 13 March 2020. The publicly traded bond issue is used to finance the acquisition of new development projects, acquisition of other clinics, and refinancing of existing debt.
“Demand for the bonds exceeded our expectations – we planned to place a EUR 3 million bond issue during the first stage and due to oversubscription we could not accept all the applications made by investors. We are pleased to become the first private healthcare company in Lithuania to opt for financing opportunities offered by alternative capital markets”, said Laura Penikienė, General manager of InMedica.
According to the company, more than 120 investors purchased the bonds during the first stage. The company plans that bonds will be listed on First North, an alternative securities market administered by Nasdaq Vilnius, within the next 6 months.
InMedica operates a chain of 19 clinics in different cities of the country and offers family medicine, specialist doctor consultations, dental, and other healthcare services. With a customer base of 75 thousand registered patients served by more than 600 specialists, InMedica is one of the largest private healthcare centres in Lithuania. In 2019 InMedica opened a modern day-surgery centre further expanding the range of services available to its patients. InMedica’s total revenue is expected to exceed EUR 12 million in 2019 (30% more than in 2018).
The largest private equity investment fund in the Baltics INVL Baltic Sea Growth Fund through its subsidiary BSGF Sanus acquired 70 per cent of InMedica in February this year. INVL Baltic Sea Growth Fund, founded by one of the leading asset management companies in Lithuania, INVL Asset Management, aims to invest in mid-sized, attractive risk-and-return companies by providing them with capital for future growth.
INVL Baltic Sea Growth Fund
In October 2019, a second close of INVL Baltic Sea Growth Fund was announced at EUR 142 million. The European Investment Fund (EIF), a part of the European Investment Bank (EIB), has become a major investor in the fund. The EIF has committed to invest up to EUR 30 million 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 respectively. Cooperation aims to increase capital investments in small and medium-sized enterprises with high growth potential in the Baltic States.
INVL Asset Management
INVL Asset Management is part of Invalda INVL, one of the leading asset management groups in the Baltic region. 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 have entrusted the group with more than EUR 1 billion of assets under management.