About the public bond offering

From November 11 to 25, 2024, AS Longo Group, the largest used car retailer in the Baltic region, is organizing a public bond offering. Both retail and institutional investors across the Baltics are invited to participate in the offering on the Nasdaq Riga stock exchange. Bonds are offered with an annual interest rate of 10%, paid monthly, and the maturity term of the first tranche is three years. The total bond issuance amount is €10 million, with a nominal value of €100 per bond. Bank of Latvia has approved the Base Prospectus of the secured bond issue of AS Longo Group.

How to join public bond offering ?

Key performance indicators

Market leader

Leading used car retailer in the Baltics, bringing a new meaning to the used car market

10% annual return

Enjoy monthly interest payments

Secured bonds

By pledges on the assets of Longo Group AS subsidiaries

Shareholder commitment

Strong strategic investors providing financing to support expansion plans

Brand awareness

We are becoming a strong name within the local market

Experienced issuer

With 2 bonds listed on Nasdaq First North since 2022

Why invest ?

Edgars Cērps

Longo Group AS , Co-Founder and CEO

Longo Group AS historical performance demonstrates Longo's capacity for growth. The company has strategically invested in all necessary business processes that support the scaling of its operations. The next steps include significantly expanding the passenger car inventory, widening and strengthening the physical presence in existing markets.

Key investment considerations

Investor loyalty program

AS Longo Group offers investors who invest more than EUR 500 as part of the public bond offering the opportunity to become a member of the investor Loyalty Program, which provides a discount on car purchases and other benefits in accordance with the base prospectus and final terms. It will be possible to apply for the investor loyalty program by registering on AS Longo Group website within one month after the bond issue date.

Resources and Documents

Articles of Association

The content of this website is an advertisement which contains general forward-looking statements on the Public Offering of bonds of AS Longo Group. Every investment decision must be based on a prospectus approved by the Bank of Latvia. An approved prospectus is available on Bank of Latvia website (https://bank.lv).

140+

Team members

€47.8 million

Total Revenue of the Group (2023)

7

Sales points across Baltics and Poland

53%

Strong Equity Ratio

340k

Unique monthly website visitors

€12,8M

Consolidated inventory value at cost

Partners of the public bond offering

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Arranger of bond issue

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Legal counsel

Collateral agent

Frequently asked questions

How to subscribe for bonds at the bank?

Follow these general steps to subscribe to bonds through your online bank

Citadele

Step 1: Visit the Citadele website.
Step 2: Log in to your Citadele online banking account or create a new one.
Step 3: Navigate to the "Investments" section.
Step 4: Choose the specific bond offering you are interested in and review the terms.
Step 5: Complete the online application and submit your details.
Step 6: Await confirmation from Citadele.

Visual instructions on how to subscribe for bonds

Didn't find your bank? That doesn’t mean you can't subscribe to our bonds. Please contact your bank directly for detailed instructions on how to subscribe. Bond subscriptions are available to investors in Latvia, Estonia, and Lithuania.

In case of any questions, please reach out to investors@longo.group, +371 26148001.

Follow these general steps to subscribe to bonds through your online bank

Citadele

Online banking:

Investments > New order > Order to buy or sell bonds.

Didn't find your bank? That doesn’t mean you can't subscribe to our bonds. Please contact your bank directly for detailed instructions on how to subscribe. Bond subscriptions are available to investors in Latvia, Estonia, and Lithuania.

In case of any questions, please reach out to investors@longo.group, +371 26148001.

Follow these general steps to subscribe to bonds through your online bank

Like

Luminor

On the Luminor Investor platform.

Didn't find your bank? That doesn’t mean you can't subscribe to our bonds. Please contact your bank directly for detailed instructions on how to subscribe. Bond subscriptions are available to investors in Latvia, Estonia, and Lithuania.

In case of any questions, please reach out to investors@longo.group, +371 26148001.

Let us help you with advice on how to subscribe for bonds. Please contact us on WhatsApp at +37129578094

If you wish to complete it yourself, please see the instructions below. It takes just a few minutes.

The subscription period starts on 11 November 2024 at 10 AM and ends on 25 November 2024 at 14.30pm EET.

Purchase order collection deadline might differ depending on the investor’s chosen bank. Please do not delay your subscription until the last minute.

Investors who apply to buy at least five bonds will be allocated at least 5 bonds and secure participation in the loyalty program.
AS Longo Group bond issue is open to any retail or institutional investor who has opened a securities or investment account at a Baltic commercial bank or financial institution. This is a type of financial account designed for holding securities and making payments when buying and selling securities. Often the most convenient option is to open a securities or investment account with a bank which is used for daily banking.
Investors will be able to purchase up to 100 000 AS Longo Group bonds with a total nominal value of EUR 10 million and a nominal value of EUR 100 per bond in the First Tranche.

The price of each bond is EUR 100, corresponding to 100% of the nominal value of the bond. The minimum investment amount per investor is 1 bond or EUR 100 with a fixed annual interest rate of 10% and a maturity of three years in the First Tranche.
Within the First Tranche issue (of the program) AS Longo Group bonds offer a fixed bond annual coupon rate of 10% with a monthly coupon (interest) payment to the investor. This means that by investing EUR 100, investors will receive an interest payment of EUR 10 for each full year, or EUR 0.83 per month before tax. At the end of the bond's maturity, the company is also obliged to repay the investor the original principal amount of the investment.
The interest rate is the rate paid by the issuer to the investor in accordance with the base prospectus and the final terms of the bonds approved by the Bank of Latvia. This rate may be fixed or variable. In the First Tranche issue AS Longo Group offers a fixed interest rate, meaning that this rate will remain unchanged throughout the term of the bond.

To calculate the monetary amount of the coupon (interest), the investor should multiply the interest rate by the principal amount, or the initial investment. For instance, if the principal amount of the investor’s investment is EUR 100 and the coupon rate is 10%, the investor will receive a coupon payment of EUR 0.83 per month or EUR 10 per year until the maturity of the bond. Upon maturity, the investor also receives repayment of the initial investment.
Yes, the issue of the AS Longo Group bonds will be secured by pledges on assets of AS Longo Group subsidiaries in Latvia and Lithuania.
The Base Prospectus of AS Longo Group approved by the Bank of Latvia and the Final Terms are available at https://www.longo.group/
Investors are invited to carefully read the risks associated with AS Longo Group bonds in the Base Prospectus, which is available at: https://www.longo.group/
The capital raised from AS Longo Group bond offering is aimed at refinancing existing liabilities, as well as additional investments to finance the Group’s expansion plans, including working capital investments necessary for purchase and preparation of new car stock and expansion of sales network.

More detailed information on the use of the financing is available in the Base Prospectus and Final Terms of the AS Longo Group Bonds. Please visit: https://www.longo.group/

The minimum investment amount is 1 bond or EUR 100 for one investor. There is no limit to the maximum investment amount.

Once the decision to invest in the bonds has been taken, a subscription (purchase) order must be submitted to your bank. If you do not have an investment or securities account, you must contact your bank to open one.

The subscription process may vary slightly among banks. Visit your bank's website, navigate to the investment section, and explore the available options. Some banks may require manual subscription, either through a phone call or by completing a written request.
The main difference between accounts lies in taxation. If you purchase bonds from an investment account, you'll only incur personal income tax when you withdraw more than your initial investment. In contrast, if you buy bonds as an individual through your own securities account, the issuer is required to withhold personal income tax at the time of withdrawal, resulting in a reduced payment to your account after tax.
Tax withholding is determined by the regulations of the country where the issuer is located, in this case, Latvia.

For Latvian residents, no tax is withheld if the individual holds the securities in an investment account. Otherwise, there will be personal income tax withheld in the amount of 20%. No tax is withheld from non-resident individuals or legal entities.

In Latvia, changes to the personal income tax are planned from 01.01.2025, but it has not yet been approved and come into effect.

Bonds are debt securities (financial instruments) through which an investor (bondholder) lends money to a bond issuer for a fixed period of time at a pre-determined interest rate. The bond issuer is obliged to pay the investors an interest rate or coupon at regular intervals (e.g. monthly) and to repay the principal amount of the bond (originally borrowed funds) to the investors upon maturity.
For a bond to be offered to the public and listed on a stock exchange, a company must prepare a prospectus that is approved by the Bank of Latvia. A base prospectus is a type of prospectus that allows an issuer to implement a bond program - several bond issues - within one year. This document contains information essential for investors to make an informed assessment of the company's (issuer's) financial performance and perspectives, issuance objectives, risk factors, strategic objectives, and other considerations before purchasing the company's bonds.

AS Longo Group is the largest used car retailer in the Baltic region, providing the most extensive selection of vehicles. Established in 2018, the Group consists of AS Longo Group and subsidiaries employs over 140 professionals and reached a remarkable revenue of 47.8 million euros in 2023. The headquarters are in Latvia, from which Longo manages 9 subsidiaries across Lithuania, Estonia, Poland, the Netherlands, Belgium, and Germany. Since the inception, Group’s mission has been to establish a new standard of quality within the used car retail sector in the Baltic region, ensuring a transparent, reliable, and outstanding car-buying experience for customers, both online and in-person.
The value of the Baltic used car market is estimated to be ~€4 billion. Currently, AS Longo Group, as a leading player, holds ~1% of this market. Industry experience in other markets, such as the Czech Republic and Finland, shows that a leading used car retailer can capture up to 8-10% of the market. This indicates that AS Longo Group has significant growth potential.

The historical performance demonstrates AS Longo Group's capacity for growth. The company has strategically invested in all necessary business processes that support the scaling of its operations. The next steps include significantly expanding the passenger car inventory, widening and strengthening the physical presence in existing markets. Furthermore, AS Longo Group aims to enhance operation and brand recognition as one of the priorities.
Longo integrates three core business areas to create a seamless and efficient operation: 1) sourcing operations and logistics management; 2) preparation centre; 3) sales and after-sales: digital and in-person across Latvia, Lithuania, Estonia, and Poland.

The company sells cars not only in one market but across four countries, effectively utilizing its inventory. Longo's sales platform, characterized by high customer traffic and independence from classified platforms, helps achieve better efficiency than most competitors.

One of the key competitive advantages also lies in company’s fully integrated IT infrastructure. It ensures a transparent and convenient shopping experience for customers.

In addition to its core business, AS Longo Group has strong partnerships with leading banks and insurance companies to provide attractive financing and extended warranty deals.
The Baltic used car market is valued at approximately €4 billion and is characterized by high fragmentation with many small players. Unlike the trends observed in Western Europe and the U.S., used cars in the Baltic region are primarily sold by private individuals. A similar shift towards a more organized sector, led by specialized companies in used car sales, is anticipated. As the used car sector evolves, AS Longo Group, with its commitment to transparency and honesty, stands to benefit significantly.
The strategic vision of AS Longo Group is to ensure its profitable growth through transformation of used car market in the Baltics. The Group plans to significantly increase its market share with an aim to become the undisputed leader of the used car market in the Baltics. To achieve it, the Group plans to increase its offered assortment of cars – both the volume and diversification of the stock, expand its physical presence in the Baltics, as well as Poland, and also continue to invest in its e-commerce platform across all markets.

The Group believes its brand, data, IT and culture are key elements to the long-term success. Longo Group AS will continue to invest in its digital capabilities, logistics network and online marketing. The overall aim is to provide an excellent customer experience and good quality cars.

AS Longo Group consists of 9 subsidiaries: SIA Longo Latvia, SIA Longo IP Holdings, Longo LT UAB, Longo Estonia OU, Longo Shared Service UAB, Longo Netherlands B.V., Longo Belgium B.V., Maxxus GmbH un Longo Poland sp. z o.o.
Strong capital base with a capitalization ratio consistently above 50%, highlighting its stable capital structure.

Gross Profit (H1 2024): EUR 3.5 million, representing a 13% increase from H1 2023.

Total Revenue (H1 2024): EUR 22.6 million, an 8% decrease compared to the same period in 2023, primarily due to a decline in average selling prices of passenger cars, while sales volumes remained fairly stable.

EBITDA (H1 2024): reached EUR 620 thousand, a 9% increase compared to the same period last year. Full-year EBITDA for 2023 was EUR 1.69 million.

Investors can find a detailed financial report at https://www.longo.group/
Investors can get the latest information on AS Longo Group's corporate news, including the results of the bond issue by checking Nasdaq Riga announcements and Group’s website https://www.longo.group/ for updates.