Last week, the international credit rating agency Fitch Ratings gave a preliminary rating of A to state-guaranteed bonds issued by UAB Valstybės Investicinis Kapitalas (VIK).
“So far, no state-owned company has received such a high rating in Lithuania, and this is the first time that the borrowing reliability of a public sector company in Lithuania will be equated to the state. This is a huge assessment and, at the same time, an obligation,” says Robertas Vyšniauskas, General Manager of UAB Valstybės investicinis kapitalas.
According to him, attracting incentive financing by distributing bonds in the market is probably the most effective due to its flexibility, efficiency, volume, potential circle of investors and borrowing price.
The preliminary rating “A” given creates preconditions for the Business Support Fund to mobilize financial resources on favourable terms and increase business support volume.
Valstybės Investicinis Kapitalas (VIK) will issue securities in stages. The bonds will be listed on the Nasdaq Vilnius Stock Exchange and available for purchase by local and foreign investors. In addition, VIK will invest in stages in the Business Support Fund managed by the State Investment Management Agency (VIVA) as needed.
“The assessment shows that the investment structure created by the state is sustainable and attractive to institutional investors. VIVA’s business model stipulates that most of the State Aid Fund’s resources will reach the Fund through the VIK. The investor will plan the bond issues in stages, taking into account the needs of the Fund. Assessing the current situation, we anticipate that the need for funds will arise already this autumn,” says Dainius Vilčinskas, CEO of VIVA.