Garantia Insurance Company Ltd and the Lead Managers – Issue of the First Rated Guaranteed Multi-Issuer Bond

We advised the guarantor Garantia Insurance Company Ltd and the lead managers Swedbank AB (publ) and Pohjola Bank plc in the issue of a EUR 70 million guaranteed multi-issuer bond, which is the first of its kind to be rated. The bond representing a new type of financing instrument for mid-market companies was marketed to and placed with Finnish and international institutional investors.

As in the first guaranteed multi-issuer bond issued in late 2013, family-owned enterprises were well represented in the issue, but as a new feature, the group of issuers also included two listed companies, CapMan Plc and Okmetic Oyj. Other issuers were EM Group Oy, Enfo Oyj, Keitele Forest Oy, Kuusakoski Oy, Lujatalo Oy and Terra Patris Oy. The allocated amounts between the participating companies are either five or ten million euros each. Both the guarantor Garantia Insurance Company Ltd (5 July 2013) and the guaranteed multi-issuer bond hold a Standard & Poor’s credit rating of A-.

This transaction like the transaction that was completed in late 2013 required again an innovative approach and good project management and coordinating skills from the legal adviser.