Moda Kapitāls – a New Bond Listing on NASDAQ OMX Riga

24.11.2010 RIG

Riga, November 24, 2010 – As of today, a new issuer JSC Moda Kapitāls has listed its bonds with total value EUR 1.7 million on NASDAQ OMX Riga Bond List. 

“Moda Kapitāls has demonstrated that borrowing from securities market via a bond issue is possible not only theoretically but also in real life”, says Daiga Auziņa-Melalksne, Chairman of the Management Board, NASDAQ OMX Riga.

Guntars Zvīnis, a Management Board member of Moda Kapitāls, discloses that the purpose of the bond issue is to attract long-term funds for the company growth as well as replace part of short-term loans. The spokesperson expects the long-term financing to bring more stability to the company, make its development plans come true and help to reach the set goals.  

“Being listed on a market is a precondition that in a long-term horizon, when we decide on another bond issue, the market will be ready to lend us at still more friendly rates. A stock exchange listing, recognizability to investors and the availability of the historic financial performance of the company are the elements that build investors’ confidence and allow expecting an increasing investors’ interest in the future,” G.Zvīnis adds.

A bond issue

In contrast to a share issue when the company receives money from investors and increases equity, i.e. there are more owners in the company, a bond issue in fact means borrowing from an unlimited number of lenders instead of taking a bank loan. The company itself can decide on:

• the bonds maturity – for how long the company is going to borrow the money from investors; 
• the nominal value of bonds – the principal amount the company will redeem to investors on maturity date;
• the coupon or fixed interest rate and the payout frequency, the percentage of the nominal value of the bond that the company will pay to investors in return for using their money.

About Moda Kapitāls

JSC Moda Kapitāls was founded in 1997 and its business is lending to natural persons and legal entities. Moda Kapitāls grants short-term loans against movable or immovable collateral.

Moda Kapitāls branch offices are located in 24 largest towns in Latvia (except Riga). The company has about 10,000 active customers. They can borrow from 200 to 25,000 LVL provided they pledge jewelry, household appliances, vehicles or real estate as collateral.  More: www.draudzigsaizdevums.lv

About NASDAQ OMX

The NASDAQ OMX Group, Inc. is the world’s largest exchange company. It delivers trading, exchange technology and public company services across six continents, with approximately 3,600 listed companies. NASDAQ OMX offers multiple capital raising solutions to companies around the globe, including its U.S. listings market, NASDAQ OMX Nordic, NASDAQ OMX Baltic, NASDAQ OMX First North, and the U.S. 144A sector. The company offers trading across multiple asset classes including equities, derivatives, debt, commodities, structured products and exchange-traded funds. NASDAQ OMX technology supports the operations of over 70 exchanges, clearing organizations and central securities depositories in more than 50 countries.  NASDAQ OMX Nordic and NASDAQ OMX Baltic are not legal entities but describe the common offering from NASDAQ OMX exchanges in Helsinki, Copenhagen, Stockholm, Iceland, Tallinn, Riga, and Vilnius. For more information about NASDAQ OMX, visit http://www.nasdaqomx.com. Please follow NASDAQ OMX on Facebook (http://www.facebook.com/pages/NASDAQ-OMX/108167527653) and Twitter (http://www.twitter.com/nasdaqomx).

Media contacts: 

Āris Dreimanis

+371 6721 2431

aris.dreimanis@nasdaqomx.com