News
Additional information on non-compliance with green bond financial commitments
AUGA Group
Under the base prospectus for bonds approved by the Bank of Lithuania on 25 November 2019 (hereinafter referred to as the Prospectus), the AUGA group, AB (hereinafter referred to as the Company) issued bonds with a total nominal value of EUR 20,000,000. Among other provisions, the Prospectus stipulates financial clauses, including: i) an interest coverage ratio of not less than 2, and ii) a consolidated equity to assets ratio of not less than 30% (hereinafter referred to as financial clauses) .
These financial clauses are calculated annually based on audited annual financial statements. If the Company fails to comply with financial covenants, the Prospectus provides for a remediation period of 6 (six) months, during which such non-compliance with financial covenants is not considered an event of default due to non-compliance with obligations.
On April 30, 2024, the Company published its audited financial statements for the year 2023. In them, it disclosed that financial commitments had not been fulfilled and thus, together with the administrator of bondholders AUDIFINA, UAB (hereinafter – the Director), noted this fact and designated a period of six months ending on October 30, 2024, as set out in the Prospectus, during which the Company has the opportunity to remedy the breach of financial covenants.
In the assessment of the Group’s management, based on the information available at the date of publication of this statement, the evolution of the Group’s financial results in 2024 is in line with what was previously published EBITDA Forecast. As disclosed in the Company’s and the Group’s financial reports, considering the budget and business plans approved for 2024, it is expected that the indicators in question will be met again during the remediation period, except for significant changes in the business environment that the Group cannot anticipate and/or control (for example, weather conditions that affect the 2024 harvest of Group companies).
Contacts:
CFO of the AUGA group, AB
Kristupas Baranauskas
+370 5 233 5340
