Bond issues fast becoming the go-to funding space for financial services providers in the Baltics

“Reikia pinigų? Pinigų yra!“ – the old adage of the ill-fated „Sekundės“ bankas, which went bust in ’94, can be loosely translated as “Need money? Got money!”. It’s still quite a common catch-phrase in Lithuania in general, and in the financial services sector specifically. It’s also the main message from the ladies and gentlemen of NASDAQ, Bank of Lithuania and the Lithuanian Banking Association, which are doing their best to showcase the benefit that becoming a listed entity in the Baltics provided.

In the first segment of a virtual three-part event which took place on 27 April (see full video here) the organizers were quick to emphasize the strong growth and liquidity of both the equity and bond markets in Lithuania. While Lithuania is still far far far far far behind many other countries in terms of capital markets to GDP metrics, there is growth in several key areas.

Both the NASDAQ-proper and the smaller brother bourse First North have seen quite a few financial sector companies join in. In just the last three years Coop Pank and Neo Finance debuted their shares, while scores of others – including Citadele, InBank, Mogo, Sun Finance, Šiaulių Bankas, Eleving - offered investors an opportunity to invest into debt. Not on this list are several private placements of bonds that did not make it to the exchange (as yet), or are listed elsewhere (think Luminor). Proceeds from attracted funds are used for expansion plans, and are now becoming a more common way to diversify funding structures.

The future is bright, as our part of the world is just starting to get to know bonds. Great to see that financial companies find lots of willing investors, especially when banking loans are usually not on option!