Latvia's Timbro Group opens €8M bond offering to refinance debt
What's the deal? Latvian forestry and timber-trading company Timbro GroupDealroom has a profile for this one. Try Dealroom → has opened a public offering of up to €8 million in secured three-year bonds to investors in Latvia, Lithuania, and Estonia. The proceeds will refinance existing Timbro bonds and fund general corporate purposes.
The terms: Nasdaq Baltic announced the offer on October 6, with 8,000 bonds priced at €1,000 each. The bonds carry a 10.0% fixed annual coupon paid monthly, mature on October 22, 2029, and are secured by a first-ranking commercial pledge on the issuer's assets.
Why now? The subscription period runs from October 6 to 19, with settlement on October 22. Existing bondholders can exchange eligible Timbro bonds into the new issue on a 1:1 nominal-value basis.
What's the endgame? Timbro, headquartered in Cēsis, runs a full-service forestry business spanning roundwood and energy-wood trading, logging, logistics, land transactions, and the E-Silva auction platform. It plans to list the bonds on Nasdaq Riga First North within 12 months.
The company reports rapid growth, selling more than 540,000m³ of timber in the first half of 2026 — up 129% year on year — across six log yards. It counts more than 400 suppliers, 250 clients, and over 100 employees.
What could go wrong? The bonds include financial covenants: an equity ratio of at least 25% and an interest-coverage ratio of at least 1.8x. A 0.5 percentage-point coupon step-up applies if net debt to EBITDA reaches or exceeds 5.0x.
The signal: Timbro estimates its share of Latvia's private timber market at more than 15%, excluding state forests, making it one of the country's largest private roundwood traders. With customers spanning sawmills, pulp mills, and pellet producers across the Baltic and Nordic region, the offering gives a fresh financial snapshot of a fast-growing private timber trader. The next update comes after the subscription period closes on October 19.
Read more: fordaq.com
Image credit: nenadstojkovicart
