07.09.2018
TAALERI PLC PRESS RELEASE 7 September 2018 xx:xx EET
Eight Finnish companies to issue a EUR 82 million multi-issuer bond guaranteed by Garantia
Eight Finnish companies are issuing a EUR 82 million 5-year multi-issuer bond guaranteed by Garantia. The bond was priced on the markets today 7 September 2018 and will be issued 14 September 2018. The fixed coupon rate of the bond is 1.375 per cent and the issue price is 99.918 per cent.
This is already Garantia Insurance Company Ltd’s third guaranteed multi-issuer bond for mid-market companies, following the ones issued in 2013 and 2014. The total amount of the issue is EUR 82 million, and its issuers are Basware Oyj, EKE-Finance Oy, Insta Group Oy, Kuusakoski Oy, Lujatalo Oy, Sofigate Group Oy, Stalatube Oy and Teknos Group Oy. The allocated loan shares of the companies range between five and fifteen million euros.
Garantia’s strong credit rating and its ability to pool smaller funding needs enable a guaranteed multi-issuer bond that offers cost-efficient access to the capital markets also for Finnish mid-market companies. For bond investors, it offers an opportunity to invest into the Finnish businesses in a new form and size class.
Garantia has a Standard & Poor’s credit rating of A-.
“The issuer companies include some of the participants in our previous multi-issuer bonds as well as totally new companies. The total bond issue became bigger than our previous issues. Considering the recent years increased overall debt financing supply, this is a definite indication of not only the competitiveness of our debt instrument and our consultative service, but also of our client companies’ need to diversify their debt funding sources. Multi-issuer bonds will be an integral part of our product portfolio also in the future,” says Martti Purhonen, Head of Corporate Sales and Financing at Garantia.
Garantia guarantees the payment of the principal and interest coupons of the entire issue in accordance with the terms and conditions of the bond. The offering was sold to institutional and other professional investors.
OP Corporate Bank Plc acted as the Lead Manager for the issue.
Taaleri
Communications
Additional information:
Acting CEO Titta Elomaa, Tel. 358 50 552 8666, titta.elomaa@garantia.fi
Head of Corporate Sales and Financing, Martti Purhonen, Tel. 358 45 616 1551, martti.purhonen@garantia.fi
Garantia in brief
Garantia is a private non-life insurance company specialising in guaranty insurance, established in 1993. Garantia is a wholly-owned subsidiary of Taaleri Plc and part of the Taaleri Group. Garantia’s product selection includes loan guaranties, commercial bonds, and residual value guaranties to corporates, and residential mortgage guaranties to consumers via partners. In addition, Garantia offers investment and rental guaranties. In 2017, Garantia’s gross premiums written were EUR 15.2 million and earnings before tax EUR 16.8 million. At the end of June 2018, the total insurance exposure was EUR 1.6 billion. The company is domiciled in Helsinki, Finland and its business practices are supervised by the Finnish Financial Supervisory Authority.
Taaleri in brief
Taaleri is a Finnish financial service company, whose parent company Taaleri Plc is listed on Nasdaq Helsinki's main market. The Taaleri Group comprises three business areas: Wealth Management, Financing, and Energy. Taaleri provides services to institutional investors, companies and private individuals. The Group’s operational subsidiaries are: Taaleri Wealth Management Ltd and its subsidiaries, Taaleri Private Equity Funds Group, Taaleri Investments Group, Taaleri Energia Oy Group and Garantia Insurance Company Ltd. In addition, Taaleri has associated companies Fellow Finance Plc, which offers peer-to-peer lending services, Ficolo Oy developing data centers, and Turun Toriparkki Oy and Munkkiniemi Group Oy that are real estate project companies.
At the end of June 2018, Taaleri had assets under management totalling EUR 6.0 billion and 4,600 asset management customers. Taaleri Plc has some 4,100 shareholders. Taaleri’s operations are supervised by the Finnish Financial Supervisory Authority.
More information about our company and services:
www.taaleri.com/en
www.fellowfinance.fi/en
www.garantia.fi/en
Sophie Jolly, Head of Communications and IR, sophie.jolly@taaleri.com, tel. 358 40 828 7317