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FAQ - About the 2024 bond issue

1. What is a bond?

   Bonds are debt securities (financial instruments) through which an investor (bondholder) lends money to a bond issuer for a fixed period of time at a fixed interest rate. The bond issuer is obliged to pay the investors an interest rate or coupon at regular intervals (e.g. monthly or quarterly) and to repay the principal amount of the bond (originally borrowed funds) to the investors at the end of the bond’s term. The issuer of the bonds may be a state, a municipality or a company whose plan is to raise funds for specific aims.

2. What is a base prospectus?

   For a bond to be offered to the public and listed on a stock exchange, a company must prepare a prospectus that is approved by the Bank of Latvia. A base prospectus is a type of prospectus that allows an issuer to implement a bond programme – several bond issues – within one year. This document contains information essential for investors to make an informed assessment of the company’s (issuer’s) financial performance and perspectives, issuance objectives, risk factors, strategic objectives and other considerations before purchasing the company’s bonds.

3. What is a public offer programme?

   A public bond offer is a public offering of a company’s bonds for retail and institutional investors followed by a listing on a stock exchange. Thus, anyone interested in purchasing a bond can become a bondholder of the issuer. The issuer can make a public offer of bonds in the amount specified in the programme after obtaining the approval of the Bank of Latvia.

   If a company offers bonds to investors under the programme, this means that the company envisages the possibility of selling several tranches of bonds within a given period. Each public offer must be made in accordance with the final terms of the bond programme, which are published on the issuer’s website. 

   Under the AS Grenardi Group bond issue programme, bonds will be issued in several tranches, with final terms for each tranche being prepared and published.

4. When will the subscription for AS Grenardi Group bonds start?

5. Who can invest in AS Grenardi Group bonds?

6. What is the price and maturity of the AS Grenardi Group bonds?

7. What is the interest rate on the AS Grenardi Group bonds?

8. What does a fixed interest rate mean?

9. Will the AS Grenardi Group bonds be guaranteed and secured?

10. Where can I find more information on the Base Prospectus for AS Grenardi Group bonds?

11. What are the risks associated with subscribing to AS Grenardi Group bonds?

    Investments in bonds are subject to various risks. Investors are invited to carefully read the risks associated with AS Grenardi Group bonds in the Base Prospectus, which is available at: TBD.

12. How will AS Grenardi Group use the funds raised through the bond issue?

    Proceeds from the bonds will be allocated towards refinancing existing bonds and financing the company’s growth – for the purchase of additional inventory, which is necessary for further expansion of the store network and assortment, as well as for financing existing and possible future acquisition transactions (M&A).

    More detailed information on the use of the financing is available in the Base Prospectus and Final Terms of the AS Grenardi Group Bonds.

13. How can I subscribe for AS Grenardi Group bonds?

    The minimum investment amount is 1 bond or EUR 100 for one investor. There is no limit to the maximum investment amount.  

    Once the decision to purchase a bond has been taken, a purchase order must be submitted to your bank. If you do not have an investment or securities account, you must apply to your bank to open one. 

    The underwriting process may vary slightly among banks. Visit your bank’s website, navigate to the investment section, and explore the available options. Some banks may require manual subscription, either through a phone call or by completing a written request

14. What is the difference between a securities account and an investment account?

    In Latvia, the main difference between accounts lies in taxation. If you purchase bonds from an investment account, you’ll only incur personal income tax when you withdraw more than your initial investment. In contrast, if you buy bonds as an individual through your own securities account, the issuer is required to withhold personal income tax at the time of withdrawal, resulting in a reduced payment to your account after tax.

15. Are taxes withheld from received interest (coupon) payment?

    For Latvian residents, no tax is withheld if the individual holds the securities in an investment account. Otherwise, there will be personal income tax withheld in the amount of 20%.  No tax is withheld from non-resident individuals or legal entities.

16. What advantages does AS Grenardi Group offer to investors?

17. What companies are part of AS Grenardi Group?

    AS Grenardi Group operates in all three Baltic States. The Issuer AS Grenardi Group is the parent company of two wholly (100%) owned subsidiaries in Latvia – SIA GIVEN Latvia and SIA Grenardi Latvia, one in Lithuania – UAB GIVEN Lithuania, and one in Estonia – GIVEN Estonia OU.

18. What is the competitive advantage of AS Grenardi Group?

    AS Grenardi Group adopts a modern marketing approach, incorporating both traditional and digital solutions. The stores are carefully designed to offer a comfortable and personalised customer experience.  AS Grenardi Group offers in its stores not only jewellery of recognized brands, but also their private labels that are highly appreciated by customers. The Group has an e-commerce platform, transparent business operations and high ESG standards, which provide for the reuse of recycled gold and precious metals and gems of known origin as much as possible. Also, the Group offers split payments both in person and in the e-store, making jewellery more and more accessible to a wider audience.

19. What are the strategic objectives of AS Grenardi Group?

    The strategy of AS Grenardi Group is to continue its profitable growth via four main cornerstones: expansion and strong market position; distinct and wide assortment; economies of scale and  customer experience and loyalty.

    The Group intends to significantly expand GIVEN’s retail chain in all three of the Baltic states and potentially also beyond this region in the future evaluating business potential. 

    The expansion is driven by the Group’s ambition to offer high-quality jewellery available within close reach from anywhere in the Baltic states. As e-commerce platforms are gaining popularity,    the Group’s strategy is to become the leading e-commerce platform of jewellery in the Baltic States.

    The Group’s goal is to achieve economies of scale via the expansion of its retail chain. First, due to expanding the retail chain the Group can obtain better pricing and payment terms from its partners as well as decrease the fixed costs per one unit sold.

    While AS Grenardi Group already offers a unique selection, it continuously strives to expand and diversify its assortment for customers. The Group’s strategy is to establish new long-term partnerships to provide an even wider and more diverse assortment. In the coming years we also expect to capitalise on Group’s existing private labels, as well as building new ones.  

    The Group’s key strength is its excellent customer service. With over 100 thousand loyal customers, the Group plans to expand its customer base through the development of a more attractive loyalty program. Additionally, the Group aims to enhance the customer service experience by offering split payments both in-store and online, as well as providing high-quality jewellery services and maintenance.

20. How does the company ensure sustainability?

    AS Grenardi Group leads the way in sustainability across the Baltics in their industry, placing a strong emphasis on the origin of raw materials, giving preference to ethically obtained materials, and engages in the circular economy, choosing cooperation partners that also use recycled gold for jewellery creation.

21. What are the latest financial results of AS Grenardi Group?

    The unaudited consolidated financial results show that the net turnover of AS Grenardi Group in 2023 reached 18 million euros, which is 40% more than in 2022. The increase in turnover was facilitated by the expansion of the retail network, the increase in sales in the existing store network and the acquisition of GRENARDI.

     The Group’s EBITDA (earnings before interest, taxes and amortisation payments) increased by 30% last year, reaching 2.9 million euros. The Group’s adjusted pro-forma EBITDA, which also includes the results of the GRENARDI network for the full year 2023, was 3.7 million euros.

    At the end of 2023, AS Grenardi Group had 82 stores in the Baltic States, of which 75 were GIVEN and 7 in the GRENARDI network. AS Grenardi Group strengthens its position regionally – 11 new stores were opened in the GIVEN network last year – two in Latvia, six in Lithuania and three in Estonia.

    Investors can find a detailed financial report at [link to REPORTS]

22. Where can investors get the latest information on the news and results of AS Grenardi Group?

    nvestors can get the latest information on AS Grenardi Group’s corporate news, including the results of the bond issue, by subscribing to the Nasdaq Baltic news section or by checking our website for updates.