Modus Group launches a new bond issue

Modus Group, a group of companies managing renewable energy, mobility services, car trade and other businesses, is launching a second public bond issue today, which is expected to raise up to 8 million euros. These funds will be used to refinance an issue of 5 million euros issued 3 years ago as well as be invested in renewable energy projects and the development of a sustainable mobility business.

The distribution is planned in two phases, with a first three-week phase expected to raise 5 million euros. The three-year debt securities are offered for purchase to private and institutional investors, who will be paid 5 per cent annual interest. The bonds are distributed by Šiaulių bankas, and the group is advised on legal subject of the issue, as during the first issue, by a certified advisor of Modus Group – the law firm Sorainen ir partneriai.

As in the case of the first issue, the newly issued bonds of the group of companies will be included in the alternative securities market First North administered by Nasdaq Vilnius.

“The first public bond issue has shown that it is an attractive tool for private and institutional investors to indirectly contribute to the development of renewable energy in the region and to obtain a sustainable return on investment. Part of the funds raised in the second issue will be used to refinance the first issue, and we will also direct them to the priority areas of our group of companies, which create value not only for business, but also for society as a whole. Investments in renewable energy and advanced mobility solutions are the basis of our sustainable growth,” says Erika Zakarauskienė, Chief Financial Officer of Modus Group.

Last year, green energy projects and the mobility business accounted for 99 per cent of the group’s total investment. In total, the group has invested almost 136 million euros in renewable energy projects in Europe. The sustainable mobility business, which belongs to the group, received more than 21 million euros in investment.

Green Genius, a renewable energy company managed by Modus Group, is the largest operator of biogas power plants in Lithuania, and the total capacity of biogas power plants installed by the company in all countries reaches 20.2 MW. Biogas power plants, located near livestock farms and landfills, extract electricity and heat from waste.

Green Genius also operates in the field of solar energy. Since 2011, the total installed capacity of solar power plants installed by the company in Lithuania, Poland, Belarus and Ukraine has reached 150 MW. In 2019 and 2020, the company entered into two sales transactions for the solar portfolio in Poland with Aberdeen Standard Investments, one of the world’s largest asset management companies. The total capacity of both solar park portfolios is 85.8 MW.

CityBee, a transport sharing company owned by Modus Group, is the leading provider of urban mobility services in the Baltic States. The company provides services in ten cities, and these services are used by more than 700 thousand registered users. CityBee’s fleet currently consists of over 2,000 vehicles, and about a tenth of the group’s total investment is planned for its development next year. It is estimated that last year 15,000 fewer cars were driven on the streets of the Baltic cities due to CityBeeservices, and the amount of carbon dioxide emitted into the atmosphere was reduced by 5.5 thousand tons.

Modus Group also owns Inter Krasta, a company representing popular car brands, Unimodus, a real estate and hotel management company, and other companies.

The first public issue of Modus Group bonds worth 5 million euros was distributed in 2017. The bonds were used for the implementation of renewable energy projects in Poland. To attract investment in the energy sector, the group has also set up investment funds for informed investors.

In 2019, Modus Group generated 56.8 million Euros EBITDA (earnings before interest, taxes, depreciation and amortization) – the audited result was almost 3 times higher than in 2018.

A detailed description can be found in the Bond Issue information document.