Lithuanian biofuel producer VLI Timber has launched the second tranche of its EUR 8 million bond programme. The first tranche, amounting to EUR 4 million, was successfully placed in spring 2025.
The second tranche offers an annual yield of 9%, with interest paid on a quarterly basis. The bond offering is arranged by Artea Bank.
The proceeds will be used to finance an investment project - the construction of a fully automated kiln-dried firewood production facility with a total investment value of up to EUR 35 million. The facility will be located in Venecija village, Jonava district.
The project is financed through a combination of the Company’s own funds, EUR 8 million in European Union support (administered via the Innovation Agency), and a loan from Artea Bank.
In addition, VLI Timber has entered into an agreement with Raft Capital Baltic Equity Fund regarding a EUR 4 million equity investment. The construction contractor for the project is Conres, and the project manager is Kenova. Construction is scheduled to commence in April 2026, with completion expected in Q2 2027.
The project has been granted Large-Scale Project status by the Ministry of the Economy and Innovation of the Republic of Lithuania.
In 2025, VLI Timber generated revenues of EUR 22.9 million, representing a 7% increase compared to 2024.
To provide investors with further information regarding the new bond issue, the Company will host a virtual investor presentation on 27 April 2026, during which management will present the project and answer questions.
10:00 - Lithuanian (Microsoft Virtual Events Powered by Teams)
11:00 - English (Microsoft Virtual Events Powered by Teams)
For more information:
Darius Lackus, Chief Executive Officer, VLI Timber (darius@vli.lt, +370 672 34196)