Corrected time zone in Timetable of the offering and technically updated attachments.
One of the leading equipment rental companies in the Baltics, AS Storent Holding (Storent), has received approval from the Bank of Latvia for its bond issue Base Prospectus. In the first tranche of the bond issue, the company plans to raise up to EUR 35 million. Both retail and professional investors are invited to invest in Storent’s guaranteed bonds with a fixed interest rate of 10% and a maturity of 3.5 years. The subscription period will start on April 2 and end on April 17.
Storent's strategic objective is to strengthen its market position in the Baltic region and continue expansion into Sweden, Finland, and other regions, while also exploring opportunities in the United States. Storent’s equipment rental services are widely used in general construction, infrastructure projects, renovation, renewable energy projects, military sector, business park development, and event management.
The capital raised from AS Storent Holding bond offering is aimed at: 1) refinancing the company's liabilities; 2) financing the company's expansion plans, which may potentially include corporate acquisition transactions in existing markets and the United States; and 3) making new investments to expand the equipment fleet.
"Investing in AS Storent Holding bonds offers investors the opportunity to participate in the growth of an innovative equipment rental company, a proven leader in digitalization with demonstrated resilience in volatile market conditions. Previous investments have significantly modernized our IT systems and rental fleet, giving us competitive advantages, and fostering growth in the Baltic and Nordic regions. The next step is a carefully considered expansion into the world’s largest rental market — the United States — where our technological edge opens up substantial opportunities for further development,” says Andris Pavlovs, co-founder and Chairman of the Management Board of AS Storent Holding.
"AS Storent Holding is an experienced issuer with a broad investor base of approximately 2,500 investors. With two successful public bond issuances already listed on Nasdaq, Storent demonstrates how a company can effectively leverage capital market funding to execute its growth strategy. The company has significant growth potential as an industry leader, which it can realise through this bond program. We are delighted that Baltic private investors again have the opportunity to participate in the bond offering with the minimum investment starting from EUR 100," notes Kristiāna Janvare, the Managing Director of Investment Banking of Signet Bank AS.
Storent evaluates U.S. market opportunity with a data-driven approach
Storent will maintain its focus on the Baltic and Nordic regions while exploring opportunities to enter the United States. Equipment rental in the United States accounts for approximately 60% of the global industry. Last year, this sector in the United States grew by 8.2%, reaching EUR 75 billion (Source: American Rental Association). This market is attractive due to its significant potential and superior profitability — with rental yields of 40–45% annually compared to 25–35% in the Baltics, Finland, and Sweden. These figures highlight the United States as offering higher returns and stronger growth prospects.
Currently, the company is exploring the opportunity to acquire up to 70% of a construction equipment rental company in the state of Texas – a region identified as a promising entry point. Storent has a clear precondition — the current owners of U.S. company will remain involved in the business to retain local knowledge and contacts. A letter of intent has already been signed with one of the potential companies, and the next steps will involve conducting due diligence.
Stable foundation for continued growth
Storent’s long-term growth strategy is grounded in strong financial results, operational efficiency, and industry experience. In 2024, the company’s annual revenue reached nearly EUR 47 million, a 7% increase year-over-year, demonstrating stable growth. EBITDA reached EUR 13.3 million.
In 2024, Storent invested nearly EUR 24 million in replacing and expanding its equipment fleet, with 32% of the fleet now less than two years old. These improvements increased operational capacity and service offerings, resulting in a 20% rise in rental revenue in the Baltics and a 6% increase in the Nordic markets for January and February 2025 compared to the same period in the previous year.
Storent fully upgraded its IT systems in 2024, adopting the Intelligent Rental Management Systems (IRMS) to enhance competitiveness and facilitate entry into new markets like the United States.
Key terms of the offering
During the public bond offering in Latvia, Estonia, and Lithuania AS Storent Holding will offer investors to purchase up to 350 000 bonds with a nominal amount of EUR 100 per bond, annual fixed interest rate of 10% and a maturity of 3.5 years. The subscription is open to both retail and professional investors and includes also an exchange offer to the holders of the two existing bond issues maturing on December 21, 2025, and on September 21, 2026. Bonds maturing at the end of 2025 are offered an additional exchange premium of 1%, while bonds maturing in 2026 are offered a 0.5% premium based on the nominal value of the exchanged bonds.
Timetable of the offering
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Start of the offering period — 2 April 2025 at 10.00 EEST.
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End of the offering period — 17 April 2025 till 12.00 EEST.
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Investor webinar — 3 April 2025 at 15.00 EEST.
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Announcement of the results — 22 April 2025.
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Settlement — 25 April 2025.
It is planned that the new issue of bonds will be admitted to trading on the Baltic Bond list of Nasdaq Riga.
The lead arranger of the bond program is “Signet Bank” AS, with AS “LHV Pank”, AB “Šiaulių Bankas” un “Redgate Capital” AS acting as distribution partners. Legal advice is provided by “ZAB COBALT” SIA.
Investor webinar registration:
Storent will host an investor webinar on April 3, 2025, at 15:00 EEST. Registration is available at: please apply.
About Storent Holding:
Storent is a company with 100% Latvian capital and a leader in rental process digitalization and online sales. Storent has the largest market share in Latvia and strong positions in Estonia and Lithuania, successfully expanding in Finland and Sweden.
Currently, AS Storent Holding includes the following companies: SIA Storent (Latvia), UAB Storent (Lithuania), OÜ Storent (Estonia), Oy Storent Holding Finland (Finland), and AB Storent (Sweden). The company employs 250 people.
More information: www.storentholding.com
Disclaimer: This is an advertisement. Each investment decision should be based on the Base Prospectus approved by the Bank of Latvia, as well as the Final Terms (available at: https://www.storentholding.com/). The approval of the Base Prospectus by the Bank of Latvia should not be understood as an endorsement of the securities.
Further information:
Baiba Onkele
Member of the Management Board and CFO of Storent Holding
E-mail: baiba.onkele@storent.com
www.storentholding.com
