Hepsor Raises €7.1 Million in Second Bond Offering

Hepsor AS, a residential and commercial property developer in Estonia, Latvia, and Canada, successfully concluded its second series of a €20 million bond offering on Friday, September 4, 2026. The bond issue, which was oversubscribed, garnered a total of €7.1 million, with 82% of the funds raised coming from investors in Estonia, 13% from Latvia, and 5% from Lithuania.

The bonds, each with a face value of €1,000 and a 9.50% annual interest rate, mature on September 11, 2029. Hepsor had the option to increase the volume of the offering by 2,000 bonds, and it exercised this right, raising the total offering to €5 million.

Hepsor's management board decided on the allocation of the offered bonds based on several criteria. All subscription orders from the same investor were aggregated, and investors who were shareholders, bondholders, or employees of Hepsor AS, as well as those who subscribed during the first week of the Offering period, received preferential allocation. Investors who subscribed for at least 100 bonds received 55% of their subscribed amount, while all other investors received 40%, but no less than 3 bonds.

Martti Krass, a member of Hepsor’s management board, stated that the bond issue will provide the company with greater flexibility to finance ongoing development projects and make new investments. "We are currently at the peak of our investment cycle, with many projects under construction simultaneously and pre-sales growing," Krass said. "The capital raised enables us to continue investing at a time when our construction activity has reached a record level and to respond more flexibly to new development opportunities."

Silver Kalmus, Head of Debt Securities at LHV Pank, noted that the participation of investors from all three Baltic countries, including institutional investors, was a significant outcome of the bond offering. "Hepsor is a recognized real estate developer in Estonia and Latvia, with an experienced team and a strong development portfolio. The results of the bond offering demonstrate investors' confidence in the company's track record and future plans," Kalmus added.

Hepsor AS, known for its innovative engineering and technical solutions in energy-efficient construction, plans to use the funds to continue its development activities in Estonia and Latvia. The company's portfolio includes 29 development projects with a combined floor area of 195,000 square meters, and it is involved in five projects in Canada, focusing on the preparation of detailed land-use plans.

The bonds will be transferred to investors' securities accounts on or around September 11, 2026, and the first trading day for the bonds on the Baltic Bonds list of the Nasdaq Tallinn Stock Exchange will be on or around September 14, 2026. Estonian resident individuals who acquire or plan to acquire Hepsor AS bonds via an investment account may defer the income tax liability arising from interest by submitting a corresponding application to the issuer.

The application form is available on the Hepsor AS website at <https://hepsor.ee/investorile/volakirjad/>. The application must be submitted no later than two working days before the interest payment date; any application submitted after this deadline will only be taken into account on the following interest payment date. Interest payments on Hepsor bonds are made quarterly on September 11, December 11, March 11, and June 11 (except September 11, 2026).