Atlantic Grupa Announces the Issuance of New Corporate Bonds

Atlantic Grupa has announced the issuance of bonds totaling €80 million aimed at refinancing existing debt and financing further operations. Both retail and qualified investors can subscribe and pay for the bonds.

As stated in the document published on the Zagreb Stock Exchange, retail investors can express interest in subscribing for a minimum of one hundred thousand bonds with a total nominal amount of one hundred thousand euros for each individual offer, while the maximum amount of bond subscriptions per individual investor will not be limited. They also added that those who already hold Atlantic Grupa bonds can exchange their existing ones for new ones on the issuance date.

These are bonds with a fixed annual interest rate that will pay interest on a semi-annual basis, while the principal will be paid in a lump sum after five years.

One of the main objectives of the issuance is the refinancing of existing bonds maturing in 2025, totaling approximately €39.8 million. The remaining funds will be used for further financing of the company’s operations.

After issuance, the bonds will be listed on the Official Market of the Zagreb Stock Exchange, although the issuer warns that there is no guarantee of trading liquidity. The joint agents for the issuance are leading banks: Erste & Steiermärkische Bank, OTP banka, Privredna banka Zagreb, Raiffeisenbank Austria, and Zagrebačka banka.

The detailed terms of the public offering of bonds will be determined by the Issuer and published in a public invitation for bond subscriptions on their website and on the Zagreb Stock Exchange before the start of the bond offering period. The yield, interest rate, and issue price of the bonds will be subsequently determined and published in the Notice of Final Terms of the issuance after the public offering of the bonds has been conducted.

As previously reported, Atlantic has a long tradition of borrowing in the capital market. As early as 2006, the company borrowed through bonds for five years for 115 million kuna at an interest rate of 5.75 percent. A new issuance of the same amount was placed in 2011, also for five years, at an interest rate of 6.75 percent. In June 2016, five-year bonds worth 200 million kuna were issued, but at a significantly lower interest rate of 3.12 percent.

To remind, Atlantic Grupa recorded a sales revenue of €259.9 million in the first quarter of 2025, which represents a 9.8 percent increase compared to the same period last year. Despite excellent sales results, profitability remains under pressure from record prices of raw coffee and cocoa, as well as further investments in employees, resulting in earnings before interest, taxes, depreciation, and amortization (EBITDA) being down by 8.7 percent to €23 million, while net profit compared to the first quarter of last year is down 38.4 percent to €6.1 million.

– In the first quarter of 2025, we achieved strong sales growth compared to the same period last year, due to revenue growth in almost all business and distribution areas and in all major markets. The pressure from record raw material prices, especially coffee and cocoa, and rising investments in employees continues to reflect on profitability results. We continue to monitor the development of the situation in a challenging and dynamic macroeconomic environment, but we remain confident that we will continue with successful and sustainable growth, focusing on strengthening competitiveness, innovation, and modernization – emphasized the CEO of Atlantic Grupa Emil Tedeschi during the announcement of the business results.