EIKA Group plans to issue a 5 million euros bonds programme to finance a residential project in Visoriai

EIKA Group plans a 5 million euro bonds program, which will be distributed via the bonds platform BeMyBond. The first tranche will involve bonds worth 2.5 million euros. The bonds will carry an annual interest rate - 7.5%, with interest payments every six months, bonds maturity - 12 months.

The anticipated distribution period for the first tranche of bonds is 18-28 June. Bonds maturity will be 12 months, with an option for early redemption no earlier than after 6 months. The bonds will be secured by first-ranking pledge of the land lease rights for the plot located at Visorių str. 20.

All individuals and legal entities registered on the BeMyBond platform will be eligible to invest in this bond issue. Bonds will be allocated on a first-come, first-served basis - meaning that the first investors will receive bonds until the 2.5 million euro target is reached.

The funds raised will be used for an A++ energy class residential housing project in Visoriai, managed by EIKA Development. The project is at an early stage - a land plot in an attractive location has been acquired alongside a building permit for the first phase of a multi-apartment residential complex. For this project, which will be developed in several stages, it is planned to develop more than 500 apartments.

Tomas Žiaugra, Director of the Development Department at EIKA Development, notes that demand for new housing in Visoriai has been increasing in recent years: in 2023, 76 apartments were sold, in 2024 - 70% more. Currently, EIKA Development is also developing the ‘Metų laikai’ housing project in this district, which will see 600 apartments built over 4 phases.

‘Analysing the city's general plan, we see that the plot planned for the new residential project on Visorių street is among the last available for multi-apartment development - surrounding residential plots are predominantly occupied by single-family and two-family homes. Visoriai’s image as an attractive residential area is evolving with each new project and accompanying district infrastructure investments. The upcoming few years offer a brief window of opportunity for homebuyers interested in acquiring high-energy-class, newly built homes in a green, non-densely populated neighbourhood,’ says T. Žiaugra.

Visoriai is currently one of the city’s fastest-developing and transforming districts - industrial areas here are swiftly being converted into residential projects, infrastructure is improving annually, roads are being upgraded, bicycle paths are emerging, and the district hosts kindergartens, schools, healthcare facilities, and shopping centres, all while surrounded by nature and tranquillity.

‘In recent years, we have noticed an improvement in financial literacy in Lithuania and growing interest in investing - more and more people understand that money left uninvested depreciates, and even small sums can be grown through investment. Until now, smaller, retail investors were often discouraged by limited access to bond issues, a lack of information, and complicated processes. With this platform, we remove these barriers, making investing in projects like this one in Visoriai accessible to everyone,’ says Indrė Dargytė, co-founder and CEO of BeMyBond.

BeMyBond has already earned investors' trust through its operational results. Last May, BeMyBond successfully issued EIKA Group’s 1 million euro bond issue for the ‘Užupio personos’ residential project, with an annual interest rate of 9%. In July 2024, 3 million euro bond issue for the ‘Jasinskio2’ business centre, offering an annual interest rate of 8.5%, was fully sold-out through this platform within one day.

‘We understand that investors are people who best comprehend the language of numbers. From the very beginning of our operations, investors have seen the projects we undertake and the financial returns these generate, prompting them to continue investing in our subsequent projects. This is the greatest recognition of our work,’ says I. Dargytė.

The BeMyBond investment in bonds platform has been operating since April 2024, when it received a crowdfunding service provider licence under the European Union (EU) Crowdfunding Regulation.