OC VISION’s First Bond Offering Exceeds Target by 30%
The largest vision care company in the Baltics, OC VISION, has not only successfully debuted on the stock exchange with the support of European Union (EU) co-financing, but also raised €10 million during its public bond offering. According to the company, total demand for the secured bonds reached €13.1 million, exceeding the emission target by 30%.
The EU funding support helped OC VISION prepare for its stock exchange debut and seize the opportunity to raise capital through the financial markets. This will enhance the company’s international competitiveness and support further investment in development and innovation. The total eligible costs for the EU-funded project were €266,866.56, of which €102,000.00 was co-financed by the European Regional Development Fund (ERDF), and €18,000.00 came from the state budget.
The aim of this EU structural fund program is to facilitate access to capital market financing for businesses, thereby strengthening their international competitiveness and encouraging investment in viable and innovative companies, enabling them to grow and scale more rapidly. The program specifically targets companies focused on technological development, growth, and investment in R&D and innovation.
“When considering financing options, it was important for OC VISION that the costs of the bond issuance were comparable to bank loan commissions. Had the costs been higher, we would not have opted for a stock exchange bond issuance. The EU funding program made this possible. During project preparation, the Central Finance and Contracting Agency (CFLA) team was extremely responsive, helping us understand the budget details, and the application was reviewed quickly,” said Gatis Kokins, OC VISION Management Board Member and Co-owner, sharing the company’s experience with the project.
The bond offering on the exchange attracted interest from both private and institutional investors across four countries. Approximately 95% of investor demand came from Latvia, with the remainder from Lithuania, Estonia, and Germany. The company expressed satisfaction with the successful outcome of its first bond issuance and highly appreciates the trust shown by investors, according to a press release following the launch.
“The funding raised will not only be used to refinance existing liabilities, but also to improve access to eye and ear health care services and the latest technologies across the Baltics,” emphasized Gatis Kokins.
Following the bond issuance, OC VISION will submit an application to Nasdaq Riga to list the bonds on the Nasdaq Baltic First North market. The first trading day on the First North bond list is expected to be June 30.
About the EU Fund Program for Capital Market Access
To improve access to growth financing via capital market instruments, an EU structural fund support instrument is available. Businesses can apply for assistance to participate in the equity or debt securities markets.
The program offers €1.41 million in total funding from the European Regional Development Fund (ERDF).
It was designed to help businesses become more competitive internationally and to support investment in viable and innovative companies, enabling them to scale and develop more rapidly.
Companies can submit project applications until December 31, 2026. Useful materials and application documentation are available on the CFLA website: https://www.cfla.gov.lv/lv/1-2-1-3