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Loan comparison platform Sortter obtained credit intermediary licence
We advised the Finnish fintech company Sortter Oy’s Estonian arm, Sortter OÜ, on obtaining a credit intermediary licence in Estonia. Establishing Estonian arm By establishing and licensing its Estonian subsidiary, Sortter extends its well-established loan comparison services to the Estonian market through its local website, sortter.ee. Sortter’s expansion into Estonia is driven by a commitment to offer good value, promote financial literacy, and provide a service that empowers clients to make better financial choices. Receiving this licence enables Sortter to offer its comparison services to Estonian consumers. “Receiving the credit intermediary license in Estonia is a significant milestone for Sortter […]
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Gjensidige sells its business in the Baltics
We advised the Norwegian non-life insurance company Gjensidige Forsikring on signing a sale agreement for its business in the Baltics with Ergo International, the company that manages Ergo’s international business portfolio. Deal value – EUR 80 million. The transaction will be completed upon receiving approvals from the authorities, including the Lithuanian, Latvian and Estonian competition councils. Gjensidige will be integrated into Ergo in the Baltics, and the operational processes of both companies will be merged. “The divestment of Gjensidige Baltics is a result of our strategic review. In the future, our strategic direction will be focused on the Nordic countries, […]
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Eesti Energia issued EUR 400 million green hybrid bonds
We advised the largest energy company in Estonia, state-owned Eesti Energia, on raising EUR 400 million by issuing green hybrid bonds. This is the first green hybrid bond issued in the Baltics to be offered internationally and listed on the London Stock Exchange. Enormous interest worldwide Investors oversubscribed the offer fourfold at more than 1.6 billion euros. Eesti Energia’s green hybrid bond offer attracted nearly 200 investors worldwide, with two-thirds of the subscribers coming from Europe, including Estonia. “The strong interest of international investors shows that Eesti Energia Group and our strategy towards a greener future is credible and ambitious. […]
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The Estonian state plans to issue, for the first time, bonds aimed at local small investors
We advised the Ministry of Finance in the development of a domestic bond programme. We drafted the programme documentation and other legal documents as part of the project, as well as advising project participants on all other legal matters that arose. The first emission issue is planned for this year The necessary framework document for the issue of a government bond has been prepared. The bond will be freely tradable; it will be listed on Nasdaq Tallinn. The exact rules of the issue aimed at Estonian retail investors – the subscription period and volume of the public retail offer, the […]
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We advised Holm Bank on trading subordinated bonds on the Nasdaq Tallinn First North market
We advised Holm Bank on organising a public offering of subordinated bonds and listing them for trading on the Nasdaq Tallinn First North market. Holm Bank is one of the fastest-growing private-capital-based banks in Estonia. The bank’s product range includes financing for individual and business clients, physical and virtual credit cards, leasing, instalment plans, and term deposits. Recently, the bank completed its first public bond issuance, raising EUR 2 million. The offering attracted significant interest from investors, with a total of 1,899 investors participating, meaning the base amount of EUR 2 million was oversubscribed by more than 6.3 times. The […]
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We advised Holm Bank on the trading of subordinated bonds on Nasdaq Tallinn First North
We advised Holm Bank on arranging a public offering of subordinated bonds and admission to trading on Nasdaq Tallinn First North. Holm Bank, an Estonian-owned and one of the fastest-growing banks in Estonia. The bank’s main product portfolio includes financing for private and business customers, physical and virtual credit cards, leasing, instalment payments and term deposits. This was the first public bond issue raising two million EUR. The offering received significant interest, with 1,899 investors participating and the base amount of two million EUR oversubscribed by more than 6.3 times. The capital raised will be used in full to finance […]
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EUR 1 billion 10-year government bond issue of the Republic of Estonia
Acting as Estonian counsel through international law firm Clifford Chance, we advised Barclays, Citigroup and Nordea as the joint managers in the EUR 1 billion 10-year government bond issue of the Republic of Estonia. The bonds were issued under the Euro Medium Term Note (EMTN) Programme. Government bond issue Investor interest in the Estonian government bonds turned out to be higher than expected, with nearly 180 investors wishing to subscribe for more than EUR 7.2 billion. The final volume of the long-term bond issue was EUR 1 billion and the coupon interest rate was 3.25% per annum. The bonds are […]
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Sorainen successful for virtual currency service providers in the licensing process
Our fintech experts advised various virtual currency service providers in the licencing process under Estonia’s reformed AML Act. Our work included both obtaining new virtual currency service provider licenses as well as the renewal of existing VASP licences. Renewal of existing licenses We were engaged by Auto Coin Payments, the operator of the marketplace AutoCoinCars that facilitates cryptocurrency payments for the automotive industry and BB Trade Estonia, operator of the marketplace zondacrypto, a global cryptocurrency exchange platform, to advise them in the process of renewing their existing virtual currency service provider license under the legislative reform. The renewal process was […]
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EUR 500 million 10-year government bond tap issue of the Republic of Estonia
Acting as Estonian counsel through international law firm Clifford Chance, we advised Goldman Sachs, Erste Group and Barclays as the joint lead managers in the EUR 500 million government bond issue of the Republic of Estonia. Successful issue in challenging circumstances The issue was carried out as a tap issue of the 10-year bonds issued in October 2022 with a total volume of EUR 1 billion, also advised by Sorainen. After the tap issue, the total aggregate volume of bonds is EUR 1,5 billion. The coupon interest rate for the bonds is 4% per annum. The bonds are listed on the […]
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Preparation of legal documents for the short-term bond programme of the Republic of Estonia
We advised Barclays as the arranger and dealer and Citibank as the dealer in the preparation of legal documents concerning the international Euro-Commercial Paper (ECP) programme of the Republic of Estonia. Covering short-term liquidity needs The programme provides the option of repeated issuance of commercial paper notes with a maturity between 1 and 364 days to cover the short-term liquidity needs of the Republic of Estonia. Furthermore, it enhances the state’s readiness to issue treasury bills in the international capital market in an operational and flexible manner. The notes can be denominated in euros, US Dollars, Sterling or other currencies. […]
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Over 500 investors participated in the secondary public offering of Saunum’s shares
We advised Estonian sauna solutions producer Saunum Group, on the secondary public offering and the admission to trading of new shares on Nasdaq Baltic Alternative market First North. Elevated interest from strategic partners In the course of the offering aimed at Estonian investors, 507 investors participated, and a total of 144 196 shares were subscribed to in the amount of EUR 1 139 148. The new shares were distributed to the investors who participated according to their submitted subscription orders. “Estonian retail investors’ interest in the offering was more modest, but many strategic partners showed increased interest in us, thanks […]
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Baltic Horizon Fund issues EUR 42 million corporate bonds
We advised Northern Horizon Capital in issuing EUR 42 million corporate bonds of Baltic Horizon Fund to refinance outstanding bonds. Baltic Horizon Fund is a real estate fund with a focus on commercial properties in the capitals of the Baltic States. It is managed by licensed alternative investment fund manager Northern Horizon Capital. Investment in the future In total, the fund issued 420 bonds at a price of EUR 100,000 each. The money received will be used in full to refinance the fund’s bonds redeemed on May 8, 2023. Although the new bonds have a 5-year term, Baltic Horizon Fund […]
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Eesti Energia signed a loan agreement to refinance the bond
Acting as local counsel in Estonia through international law firm Dentons, we advised Deutsche Bank in connection with a syndicated loan agreement for a total of EUR 600 million to Eesti Energia. International energy company Eesti Energia is an international energy company whose home markets are the Baltic States, Finland and Poland. The group is engaged in energy production and sales, as well as offering useful and convenient energy solutions to customers. The group’s goal is to achieve carbon neutrality in electricity production by 2035 and in the entire group’s production by 2045. Sustainability linked loan On 15 February 2023, […]
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Conexus Baltic Grid prepares up to EUR 80 million bond programme
We acted as transaction counsel in the up to EUR 80 million bond programme for Conexus Baltic Grid, a unified natural gas transmission and storage operator in Latvia. The Bond programme was arranged by Skandinaviska Enskilda Banken AB Helsinki Branch. For the time being Conexus Baltic Grid has decided to postpone its inaugural first issue. About the transaction Sorainen acted as legal counsel for the bond transaction, which included drafting a base prospectus; assistance with document coordination and approval from the Financial Capital and Market Commission (as of 1 January 2023, Latvijas Banka), the stock exchange (regulated market) (Nasdaq Riga), […]
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The Better Fund obtains activity license
On a pro-bono basis, we are advising The Better Fund, an ESG-focused fund, helping female founders and gender-balanced teams in the CEE region get access to capital to scale world-changing ideas. Empowering diverse teams Most recently, we assisted The Better Fund in the process of obtaining an activity license from the Financial Intelligence Unit and registration from the Estonian Financial Supervision and Resolution Authority in order to act as a small fund manager to a limited partnership fund. The fund is also planned to act as a Sustainable Finance Disclosure Regulation (SFDR) Article 9 fund, i.e. the highest ESG requirements […]