Mundus Bridge Finance will acquire EUR 7 million of Orion Leasing bonds

The Mundus Bridge Finance private debt fund signed an agreement with Orion Leasing on the acquisition of EUR 7 million of bonds. Mundus Bridge Finance acquired part of the bond issue (EUR 5,3 million) at the time of signing the agreement and will acquire the remaining bonds later.

“Investing in a leasing company that provides commercial vehicle and equipment financing services for businesses in Lithuania nicely adds to and diversifies our Mundus Bridge Finance fund’s portfolio. The decision to invest was driven by both the experience of the leasing company’s team and the potential of the leasing market itself in Lithuania,” says the Mundus Bridge Finance fund Investment Manager Vincas Lukšas.

According to Laimonas Belickas, the CEO of Orion Leasing, Lithuania’s growing leasing market and businesses’ increasing need for fast, effective financing solutions create favourable conditions for expanding the amount of financing the company provides for small and medium-sized businesses.

“On average, around EUR 1.9 billion of lease financing deals are done annually in Lithuania, and in 2022 alone, the Lithuanian leasing market grew by about 8.7%. Companies are looking for an alternative to bank financing, and we can provide them with quick and efficient access to capital,” Belickas explains.

Orion Leasing’s CEO said the new investment will help the company further diversify its capital structure and ensure the growth of its business. Having thus far focused its activities in Lithuania, the company is now starting up in the other Baltic countries and actively exploring opportunities to expand into one of the major EU markets.

The fact that Orion Leasing has a guarantee from the European Investment Fund (EIF) helped make a positive investment decision, V. Lukšas notes.

“The EIF’s guarantee not only reduces the risk of the leasing company’s portfolio, but also adds transparency, since that is a business partner with high standards of accountability,” V. Lukšas says.

Mundus Bridge Finance, an open-ended fund for informed investors, seeks a stable long-term return by investing in private debt securities of companies in the fast-growing alternative finance sector and providing bridge financing for projects of various types. Since its launch in 2015, the fund has completed 20 transactions.

At the end of May 2023, Mundus Bridge Finance had assets under management of EUR 27.6 million. The Mundus asset management company is wholly owned by INVL Asset Management, a part of INVL – the leading investment management and life insurance group in the Baltics.

Important notice 

This is a marketing communication of information nature, which is not and shall not be construed as an offer to purchase investment units of a collective investment undertaking, an investment recommendation, or investment research, as it is not designed to take into account the investment objectives, financial situation, or needs any concrete individual investor. 

When investing, the investors assume the risk associated with the investment. The value of investments can both rise and fall, and an investor may recover less than he/she/it has invested. Past investment results do not guarantee the same results or profitability in the future. Past performance is not a reliable indicator of future performance. Before making a decision to invest, a potential investors should, on their own or with the help of investment advisers, assess the suitability of the investment for them along with the taxes and fees related to the investment, consider all the risks related to the investment, and carefully read the rules, prospectus and other documents of the respective collective investment undertaking. 

Units of this collective investment undertaking, mentioned in this press release may only be distributed to informed investors as defined in the Law on Collective Investment Undertakings for Informed Investors of the Republic of Lithuania, as amended and supplemented from time to time, and may not be distributed and transferred to any other clients. 

About the INVL group

INVL is the leading investment management and life insurance group in the Baltic region. Its companies manage pension and mutual funds and life insurance directions, individual portfolios, private equity, and other alternative investments. Over 300,000 clients in Lithuania, Latvia and Estonia and international investors have entrusted the group’s companies with the management of more than EUR 2 billion of assets. In the business for more than 30 years now, the group has solid experience in managing private equity assets and building market players that are leaders in their respective fields in the Baltic countries and Central and Eastern Europe.

About Orion Leasing

Orion Leasing is a business leasing company established in 2021 by the Orion Securities brokerage firm together with the management team of the former leasing and asset finance company UniCredit Leasing to provide fast, efficient access to capital for investment in business modernisation and technological progress. The company focuses heavily on green conversion and circular economy solutions, including highly flexible financing for vehicles, heavy machinery, and industrial and construction equipment. Since 2022, it has offered clients a so-called leasing partner environment, where a client’s products are offered along with integrated leasing solutions. The company late last year, secured and has recently begun using a EUR 53 million European Investment Fund guarantee for its leasing portfolio which is valid throughout the EU. Orion Leasing, together with its clients and partners, will open up several new EU markets for its services later this year, thus further improving the opportunities for Lithuanian businesses to expand in EU countries.