During the primary distribution period of a public issue, AS Balti Investeeringute Grupp (BIG) sold different types of bonds worth six and a half million Estonian kroons.

According to the initial information, AS Balti Investeeringute Grupp (BIG) sold bonds of public issue during the primary distribution period from May 15 to June 27 approximately to a hundred private person investors in the total amount of EEK 2.6 million. The maturity date of the bonds is 28 June 2002 and they bear an annual interest of 10%. In addition to this, the company sold bonds of closed issue for more than EEK 3.3 million in the same period.

Ingo Põder, chairman of the board of AS Balti Investeeringute Grupp, said that this was the first time the company managed to sell such a great number of bonds in one month's time.

"In the course of public issue we noticed the investors' great interest in long-term bonds. Responding to the investors' demand, we conducted additional closed issues of bonds with two to three years' maturity," explained Põder.

In Põder's opinion, the reason for the popularity of BIG's long-term bonds may lie in the greater yield of long-term bonds. Besides this, the reduction of interest on bank deposits has led the small investors to believe that deposit interest will not increase this year.

This autumn BIG plans to conduct its fifth public issue of bonds, which will include the issue of bonds with two to three years' maturity as well. In 1995 the volume of public issue bonds was EEK 3 million, in 1996 EEK 4 million and in 1999 EEK 6 million.

In the first quarter of 2001, AS Balti Investeeringute Grupp posted a net profit of EEK 1.4 million, 40% more than in the same period a year earlier. The year 2000 audited net profit of the company exceeded EEK 5 million, which is three times more than in 1999.

AS Balti Investeeringute Grupp was founded in Tartu in 1992. At present the company has 2600 clients and it is the greatest lender of money to private persons in the Baltic States after banks and leasing companies. In 1993 the company expanded to Tallinn and in 1994 to Pärnu. The first foreign branch was established in Riga in 1996. The name of the subsidiary is AS Vidzemes Kredits and its main areas of operation are similar to those of the parent company.

Further information:

Ingo Põder
Chairman of the management board of AS Balti Investeeringute Grupp
Tel. 07 441 950