Auga Group, the Lithuanian organic food firm, has announced that it is aiming to raise EUR20m (US$22.1m) through the launch of green bonds next week.
They will be available for subscription from 2-6 December.
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Green bonds are specifically earmarked to be used for climate and environmental projects and Auga said it will be the first fully privately-owned entity in the Baltic states to issue such investment vehicles.
It is hoping to raise money via a public offering in Lithuania and Estonia. The bonds will be issued in tranches and offered to private and public investors.
The nominal value of one bond will be EUR1,000. Their maturity date is 11 December 2024 and annual interest will be 6%.
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All issued bonds will be admitted to trading on the Baltic Bond List of Nasdaq Vilnius.
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By GlobalDataIndependent reviewers acknowledged that the company’s bonds are in line with the stated definition of green bonds within the International Capital Market Association Green Bond Principles.
Dalius Misiunas, chairman of Auga’s board, said: “Despite the fact that agriculture generates almost one quarter of global greenhouse gas emissions, we don’t see companies of this sector in the green bonds market.”
He added: “We expect that the investor community as well as private individuals will contribute to the implementation of our ideas.”
Auga Group has set itself a goal of minimising greenhouse gas emissions from its operations.
To accomplish this the company is applying a closed-loop organic farming model that seeks synergies among different brands of agriculture and secondary use of organic waste in the farms.
The company also uses min-till technologies in most of its cultivated lands. These technologies protect soil from erosion, preserve biodiversity and reduce fuel consumption, thus reducing greenhouse gas emissions.
Auga is also developing biogas application technologies to replace the fossil fuels used in agricultural machinery once the biogas tractor is developed.
The bonds offering is approved by the Bank of Lithuania while LHV Bank is to be lead manager, bookrunner and arranger of the programme.
