Results of Hepsor AS’s bond offering

On Friday, 21 November 2025, the public offering of bonds of Hepsor AS (registry code 12099216, address Järvevana tee 7b, 10112 Tallinn, Estonia; Hepsor) ended (the Offering). This was the first series of Hepsor’s 20-million-euro bond programme, which was carried out on the basis of the  prospectus approved by the  Estonian Financial Supervision Authority (FI) on 10 November 2025.

As a part of the Offering, Hepsor offered up to 6,000 EUR 9.50 Hepsor AS bond 25–2028 with a nominal value of 1,000 euros, maturing on 26 November 2028 and carrying a fixed annual interest rate of 9.50% payable quarterly (the first interest payment will be made on 26 February 2026). In the event of oversubscription, Hepsor had the right to increase the volume of the Offering by up to 2,000 bonds. The Offering was directed at retail and institutional investors in Estonia, Latvia and Lithuania.

A total of 1,079 investors participated in the Offering, subscribing for bonds in the total amount of 8.5 million euros of which 6.2 million euros, or 72.8%, in Estonia; 2.1 million euros, or 24.6%, in Latvia; and 0.2 million euros, or 2.6%, in Lithuania. Therefore, the base volume of the first series of the Offering in the amount of 6 million euros was oversubscribed by 1.4 times. Hepsor exercised its right to increase the volume of the Offering by 2,000 bonds, as a result of which the total volume of the Offering increased to 8 million euros.

The management board of Hepsor AS decided on the allocation of the offered bonds at its discretion, based inter alia on the following principles:

1. All subscription orders made by the same subscriber were aggregated.
2. In the allocation, preference was given to Hepsor AS shareholders who, as of the close of business day on 11 November 2025, were Hepsor AS shareholders. In addition, preference was given to employees of Hepsor and to institutional investors. These investors were allocated 100% of the amount they subscribed for, and in total these investors accounted for 14% of all allocated bonds.
3. All other investors were allocated 87.5% of the amount they subscribed for, but not less than 10 bonds.
4. Numbers of bonds with decimal places were rounded up to the nearest whole number.

Martti Krass, Member of the Board of Hepsor: “I would like to thank all investors who trust our vision and support our growth objectives. Your trust enables us to continue pursuing ambitious goals and creating long-term value through our real estate development projects.”

According to Silver Kalmus, Head of the Bond Division at LHV Bank, the issuance reflected strong investor confidence in Hepsor: “During the investor roadshow, there was a clear sense of trust in the listed company Hepsor – this is confirmed by the circle of more than one thousand investors who decided to invest in Hepsor’s bonds. I am especially pleased to see the activity of Latvian investors, who subscribed for more than two million euros worth of Hepsor bonds. At the investor meetings in Latvia, we were left with a positive impression that local investors and potential homebuyers welcome Hepsor as a developer of high-quality homes in Riga. I believe there is significant potential in Latvia in the context of upcoming series under the programme, as well as continued investor interest in Hepsor’s bonds,” Kalmus commented.

The bonds will be transferred to investors’ securities accounts on November 26, 2025 or on a date close to it, and, the first trading  day of the bonds on  the Nasdaq Tallinn Stock Exchange Baltic Bond List will be 27 November 2025 or a date close to it.

Estonian resident individuals who have acquired or plan to acquire Hepsor bonds through an investment account may, in accordance with the Income Tax Act, defer the income tax liability on interest and receive the full interest on the bonds in their investment account. To do so, a corresponding application must be submitted to the issuer.

The application form is available on the Hepsor AS website:

The application must be submitted only once and no later than two business days before the interest payment date. Applications submitted later will be taken into account only for the next interest payment date. Hepsor bond interest payments are made quarterly on 26 February, 26 May, 26 August, and 26 November.

Martti Krass

Member of the Management Board

Phone:

E-mail: 

Hepsor AS () is a developer of residential and commercial real estate. The Group operates in Estonia, Latvia, and Canada. In fourteen years of operation, we have created 2,003 homes and nearly 44,787 m² of commercial space. Hepsor is the first developer in the Baltic states to implement a number of innovative engineering solutions that make the buildings it constructs more energy efficient, and thus more environmentally friendly. The company’s portfolio includes 25 development projects with a total area of 178,200 m². In addition, the group is active in five projects in Canada, where the main activity is the preparation of detailed spatial plans for land, thereby achieving greater building rights.

Important information 

This notice is an advertisement for securities within the meaning of Regulation 2017/1129/EU of the European Parliament and of the Council of 14 June 2017. Each investor must make an investment decision solely on the basis of the information contained in the Prospectus, its summary, the terms and conditions of the bond, and the final terms and conditions. The approval of the Prospectus by the Financial Supervision and Resolution Authority shall not be regarded as an endorsement of Hepsor’s bonds.

The information contained in this notice is not intended to be published, shared or transmitted, in whole or in part, directly or indirectly, in countries or under circumstances in which publication, distribution, or transmission would be unlawful, or to persons subject to financial sanctions by competent authorities. Hepsor’s bonds are only being offered publicly in Estonia, Latvia, and Lithuania, and no sale or offer of bonds takes place in any jurisdiction where such an offer, solicitation, or sale would be illegal without a statutory exemption or qualification, or to persons subject to financial sanctions by competent authorities. The bonds are only being offered publicly on the basis of the Prospectus, its summary, the terms and conditions of the bonds and the final terms and conditions, and the Offer is only directed to the persons to whom the Prospectus is addressed. This notice has not been endorsed by any supervisory authority and is not a prospectus.