Storent bond issue oversubscribed

Latvia-based rental company Storent has raised almost €13 million through a public bond offer. The over was oversubscribed, with €10 million initially planned.

The offering took place simultaneously in all three Baltic countries from 25 August to 10 September. The bonds carry a fixed annual interest rate of 10%, have a maturity of 3.5 years and a nominal value of €100.

Storent said the proceeds will be used to refinance bonds maturing in September 2026 and to support the company’s further growth.

Image: Storent

Institutional investors accounted for approximately 30% of total demand and retail investors for 70%. More than 1,200 investors participated, bringing Storent’s total investor base to more than 5,000.

Andris Pavlovs, founder and chairman of Storent Europe, said; “The results of this bond offering are a strong vote of confidence in Storent’s growth strategy.

“In recent years, we have made significant investments in our rental fleet and technology, while also expanding our operations in the United States, which has already become our second-largest market.

Andris Pavlovs, founder and chairman of Storent Europe. (Image: Storent)

“Since our first bond issue in 2017, we have consistently built relationships with investors across the Baltics, so we particularly value the fact that demand for this offering exceeded the initially planned amount.”

Storent has been active in the capital markets since 2017 and this was its seventh bond issue. All three bond issues that have reached maturity to date have been repaid in full and on schedule.

The company employs 304 people and has 34 rental depots: 15 in Latvia, nine in Lithuania, four in Estonia, three in Finland, one in Sweden, and two in the US. Storent claims to be market leader in Latvia, with “strong positions” in Estonia and Lithuania.