In the 9 months of 2023, the ALTUM's newly issued support instruments amounted to 201 million EUR (-18.8% compared to the corresponding period of 2022). The portfolio of support instruments at the end of September 2023 compared to the end of 2022 maintained a positive growth trend (+1.8%) in financial instruments, as well as in the Individuals segment and the Agriculture segment.
Trends characterizing the reporting period:
- Although, in general, the cautious and wait-and-see attitude of entrepreneurs and individuals towards new investments is still reflected in the ALTUM portfolio, the volume of new transactions in the SMEs and Mid-caps segment has grown by 2.7% in the 9 months of 2023 compared to the previous year,
- There is more activity in the loan programmes for the implementation of energy efficiency and sustainability projects, in the programme for mitigating the consequences of Russian military aggression in Ukraine, as well as in the Renewal and Resilience Fund’s programmes, where more and more new deals are expected in the coming quarters. The closing of transactions will also continue the investment loans programme for Mid-caps with capital rebate,
- In the Renewal and Resilience Fund’s programmes, approval of new transactions continues, and the first disbursements of capital rebate are underway. In the energy efficiency programme for companies, the first recipients of capital rebate are the ship steel and aluminium parts manufacturer "Lanos" and the woodworking industry company "AJG Plus", both of which have established solar power plants and will use the produced energy to ensure the production process, which also means reduced dependence on purchased energy resources and risk of growing tariffs. In conditions of credit slowdown, the capital rebate is an important part of the investment project, as it significantly improves the project's feasibility,
- In the spring of this year, in order to promote lending in banks, ALTUM introduced two types of incentives for guarantee’s instruments - a 0% guarantee premium for the entire guarantee’s term for new sustainable projects and a 50% reduction in the guarantee’s premium for the entire guarantee term for all commercial guarantees, including guarantee term extensions and increase of guarantee amount. This allows to reduce the costs for the companies by attracting the ALTUM guarantee to the bank loan,
- On the other hand, in autumn, the overall rate for new ALTUM loans for SME projects, including farmers and fishermen, was reduced by approximately half for the 12 months period starting from the loan issuance. Such a rate reduction also applies to all sustainable projects to promote the transition of companies to a low-carbon economy. For sustainable projects, ALTUM has also reduced the fixed part of the variable rate by 0.5 percentage points for the 12 months period starting from the loan issuance.
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JSC Development Finance Institution Altum is a Latvian state-owned company providing enterprises and households access to financial resources by means of support financial instruments - loans, guarantees, investments in venture capital funds - in the areas defined as important and to be supported by the state, thus developing the national economy and enhancing mobilization of the private capital and financial resources. On 16 December 2022 Moody’s Investors Service (Moody’s) affirmed the Company’s Baa1 long-term issuer rating, with outlook stable, same as affirmed on 25 March 2019. The baseline credit assessment (BCA) is also affirmed at Baa3, together with the short-term issuer rating at P-2. The assigned Moody’s rating of Altum is one of the highest credit ratings assigned to corporate entities in Latvia. On 24 October 2017 the bonds issued by Altum were listed on a regulated market – Baltic Bond List of Nasdaq Riga.
AS Attīstības finanšu institūcija Altum Investors Relationships Division