TALLINN, Estonia, June 18, 2026 /PRNewswire/ -- ESTO Group (ESTO Holdings OU), the leading Estonian non-bank consumer credit provider, today announced the completion of a €20 million senior unsecured bond issuance (ISIN EE0000004XXX). Proceeds will redeem the Group's outstanding €15 million secured 2026 bond (ISIN EE3300005XXX) in full, with remaining capacity supporting continued growth across the Baltic region.
The notes were issued on June 16, 2026, bear a fixed coupon of 9.50% payable quarterly, and mature on June 16, 2029, and are registered with Nasdaq CSD. The issuance was a private placement. The new notes rank as senior unsecured obligations of the Group and carry a coupon 250 basis points below the 12.00% rate of the secured 2026 bond they replace.
ESTO will redeem its €15 million secured bond in full. Noteholders representing approximately 30% of the 2026 bond elected to exchange into the new 2029 notes. The issuance was fully subscribed, with 60% allocated to institutional investors and 40% to private investors. ESTO welcomes new investors and acknowledges the continued participation of its existing bondholders.
Mikk Metsa, Founder and CEO of ESTO, commented:
"The bond market is becoming a core part of how we fund ESTO. With the subordinated notes programme, this is our fourth note issuance, and every time the investor base has widened. A meaningful share of those who held our earlier bonds chose to stay with us in this one - many of them have been with us for years. That continuity is the clearest signal that we are on the right track as we grow the business across the Baltics."
The new bond forms part of ESTO's diversified funding structure, which comprises institutional credit facilities, a senior bond programme, and the €20 million subordinated notes programme established earlier in 2026. The structure is designed to maintain conservative leverage while supporting continued loan portfolio growth.
Gustav Juurikas, CFO of ESTO, commented:
"This transaction redeems our 2026 bond obligation in full and reduces the cost of our senior funding by 250bps, whilst moving the instrument from secured to unsecured. At the end of Q1 2026, our equity ratio stood at 33%, and interest coverage at 2.4x - the highest levels recorded by the Group to date. We thank the holders who exchanged into the notes and welcome the investors joining ESTO for the first time."
Signet Bank AS acted as arranger. Eversheds Sutherland Ots & Co acted as legal counsel to ESTO Holdings.
About ESTO:
ESTO is a dynamic, forward-thinking company that aims to revolutionize the shopping experience by simplifying the complex shopping ecosystem. Leveraging its multi-year expertise and position as Estonia's leading non-bank consumer credit institute, ESTO is positioned to reshape the e-commerce landscape in the Baltics and beyond. With a strong emphasis on technology and customer loyalty, ESTO aims to provide a seamless, tailored, and omnichannel shopping experience for both consumers and retailers.
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