APF Holdings (hereinafter referred to as "APF"), which includes one of the largest Baltic egg producers SIA Alūksnes putnu ferma, has successfully secured €7 million from a private bond placement. CVI acquired the entire volume of the bond issue. The maturity for the bonds is set at four years.
In addition to the €5.3 million raised in last year's initial public offering (IPO), APF will utilize the funds from the bond issue to execute the company's growth plans. These plans entail the construction of two new laying hen facilities, the implementation of new egg product processing production lines, and the construction of warehouses.
"The successful bond issue enables us to realize APF's plans and increase our production capacity by approximately 60% over the coming years. We see a growing demand for eggs and egg products both in Latvia and across Europe, particularly for cage-free eggs, and we aim to swiftly implement our development plan to capitalize on this market trend. The involvement of CVI, a leading CEE investment management company, alongside two pension funds that invested during APF's initial public offering, demonstrates the trust of financial market professionals in APF's business model and aspirations," said Jurijs Adamovičs, founder and Chairman of the Management Board at APF Holdings.
CVI is an independent Polish investment firm currently managing 11 different funds with total assets of €750 million. CVI's investments span across nine Central and Eastern European countries. Among the investors in funds managed by CVI are globally renowned financial institutions such as The European Investment Fund (EIF) and The European Bank for Reconstruction and Development (EBRD). In the course of finalizing the acquisition of the entire bond issue, CVI and APF have formalized an agreement wherein CVI expresses a provisional commitment to provide an additional €5 million to APF, subject to the company meeting predetermined financial covenants. This development signifies that APF has effectively secured the necessary funding to advance its ongoing investment program and refinance its existing loan portfolio with local commercial banks.
"APF is a regional market leader in egg production that is focusing on cage-free technology thus besides good financial results being also at the forefront of ESG initiatives. The group is working on its next expansion phase to solidify its market position and bring more high-quality eggs to regional consumers for which it requires substantial additional capital, and we are happy to be able to support it in its growth story," commented Radoslav Tausinger, Partner at CVI.
The debt raising process of APF was supported and led by M&A and capital raising firm Oaklins, legal advice and support on the bond issue was provided by TGS Baltic and Juzala Salwa Adwokaci Spółka Partnerska.
APF Holdings (NASDAQ: EGG) is a dynamic group of companies engaged in poultry farming, egg production, and trade, as well as the production of biogas and organic fertilizers related to poultry farming processes. Its portfolio includes SIA Alūksnes putnu ferma (poultry farming and egg production), SIA APF Trading (wholesale trade of chicken eggs), SIA Oluksne (provision of poultry farming and egg production services), SIA APF Energy (production of gas and organic fertilizers), and SIA Preiļu putni (poultry farming and chick rearing). Founded in 2017, APF Holdings has become a leading player in the poultry and egg industry in the Baltic region.