Attīstības finanšu institūcija Altum
Interim report (Q1 and Q3)
JSC Development Finance Institution Altum Group unaudited interim condensed report for the three months period ended 31 March 2020
Inside information, 2020-05-29 13:50 CEST --
JSC Development Finance Institution Altum Group’s (hereinafter – Altum Group) outstanding portfolio (gross) is of 631 million euros as at 31 March 2020, comprised by 23,109 contracts, including:
guarantees portfolio of 287 million euros, the total number of contracts 16,323;
loan portfolio of 226 million euros, the total number of contracts 5,929;
investments in venture capital funds for the total amount of 71 million euros, the total number of projects financed by funds 248;
Land Fund of 47 million euros, the total number of transactions 609.
Since the beginning of the year, Altum Group’s financial instruments portfolio has grown by 2.3% (14 million EUR) in terms of volume and by 3% (672 projects) in terms of the number of projects. The Land Fund has the most rapid increase of the first quarter of 2020 increasing its portfolio by 19.4% (7.7 million euros) and rapidly getting closer to the amount of 50 million euros.
According to the unaudited interim condensed reporting data, in 3 months of 2020 Altum Group has operated at 2.6 million euros profit.
Reinis Bērziņš, Chairman of the Management Board of Altum:
The first quarter of 2020 has been marked by a turbulence created by the rapid spreading of coronavirus all over the world. When predicting the development of the situation and reacting to the processes in Latvia and whole world as efficiently as possible, Altum distributed special financial instruments for the support of the entrepreneurs affected by the crisis regardless of the industry. We have been ensuring credit guarantee and loan finance instruments with especially favourable conditions to the enterprises affected by the crisis since the 25th of March. The total amount is 450 million euros and the positive influence to the Latvian economy will be approximately 900 million euros. Also, changes in export credit guarantee programme have been made significantly expanding the pool of entrepreneurs, which can use the Altum guarantee for the insurance of operations. At the same time, we are ensuring all the rest of Altum’s financial instruments including loans for start-ups, funding to SMEs, loans for purchasing agricultural land, Land Fund services and other services used by enterprises for development according to their specifics and needs. In order to ensure further development of the rapidly growing Land Fund, Altum issued obligations of the total amount of 20 million euros in April this year. At a time when there is uncertainty all around the capital markets due to the global pandemic, liquidity is decreasing in the financial markets and investors are especially careful, the demand for Altum’s bonds exceeded the supply four times and it allowed to issue obligations with excellent financial terms. The achieved result is a very positive emitent’s evaluation of Altum from the side of the capital market and we are very pleased about it.
JSC Development Finance Institution Altum is a Latvia state-owned company that ensures access of the enterprises and households to the financial resources by means of support financial instruments - loans, guarantees, investments in venture capital funds - in the areas defined as important and to be supported by the state, thus developing the national economy and enhancing mobilization of the private capital and financial resources. On 25 March 2019 Moody’s Investors Service (Moody’s) reconfirmed Altum’s Baa1 long-term issuer rating, with outlook stable. The baseline credit assessment (BCA) was upgraded to investment grade rating baa3. The assigned Moody’s rating of Altum is one of the highest credit ratings assigned to corporate entities in Latvia. On 24 October 2017 the bonds issued by Altum were listed on a regulated market – Baltic Bond List of Nasdaq Riga.
AS Attīstības finanšu institūcija Altum Investors Relationships Division
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