On Friday, 4 September 2026, the public offering of bonds by Hepsor AS (registration number 12099216, address Järvevena tee 7b, 10112, Tallinn, Estonia; Hepsor) (the ‘Offering’) ended. This was the second series of Hepsor’s €20 million bond programme, which was carried out on the basis of the base prospectus approved by the Financial Supervision Authority (FI) on 10 November 2025 and the supplement to the base prospectus approved on 21 August 2026.
As part of the Offering, Hepsor offered up to 3,000 EUR 9.50 Hepsor AS bond 26-2029 with a nominal value of 1,000 euros, maturing on 11 September 2029 and bearing a fixed interest rate of 9.50% per annum payable quarterly (the first interest payment will be made on 11 December 2026). In the event of oversubscription, Hepsor had the right to increase the volume of the Offering by 2,000 bonds. The Offering was directed at retail and institutional investors in Estonia, Latvia and Lithuania.
A total of 974 investors participated in the Offering, subscribing for bonds in the total amount of 7.1 million euros, of which 5.8 million euros, or 82%, in Estonia, 0.9 million euros, or 13%, in Latvia, and 0.3 million euros, or 5%, in Lithuania. Therefore, the base volume of the second series of the Offering in the amount of 3 million euros was oversubscribed 2.4 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 5 million euros.
The management board of Hepsor decided on the allocation of the offered bonds at its discretion, based inter alia on the following principles:
- All subscription orders made by the same subscriber were aggregated;
- In the allocation, preference was given to investors who, as at the close of business on 21 August 2026, were shareholders and bondholders of Hepsor AS, as well as Hepsor employees. These investors were allocated 100% of the amount they subscribed for;
- All investors who subscribed for at least 100 bonds were allocated 55% of the quantity they subscribed for;
- All investors who subscribed during the first week of the Offering period, i.e. by 30 August 2026, were allocated 55% of the quantity they subscribed for;
- All other investors were allocated 40% of the quantity they subscribed for, but not fewer than 3 bonds.
Martti Krass, Member of the Management Board of Hepsor, said that the bond issue gives the company greater flexibility to finance ongoing development projects and make new investments in Estonia and Latvia. The capital raised will allow Hepsor to continue investing at a time when its construction activity has reached a record level and to respond more flexibly to new development opportunities.
“We are currently at the peak of our investment cycle, with many projects under construction simultaneously and pre-sales growing. We are very grateful for the trust investors have placed in us. The capital raised enables us to move forward successfully with our investments and pursue new acquisitions that support Hepsor’s continued growth,” Krass said.
Silver Kalmus, Head of Debt Securities at LHV Pank, said he was pleased that investors from all three Baltic countries, including institutional investors, participated in the second series of Hepsor’s EUR 20 million bond programme. “Hepsor is a recognised 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 said.
The bonds will be transferred to investors’ securities accounts on or around 11 September 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 14 September 2026.
Estonian resident individuals who have acquired or plan to acquire Hepsor AS bonds via an investment account may, in accordance with the Income Tax Act, defer the income tax liability arising from interest and receive the full amount of bond interest into 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: https://hepsor.ee/investorile/volakirjad/.
The application must be submitted only once and 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 11 September, 11 December, 11 March and 11 June (except 11 September 2026).
