AUGA group - Notification on material event

Regarding the meeting of bondholders convened by UAB AUDIFINA

In accordance with the bond base prospectus (hereinafter – Prospectus) approved by the Bank of Lithuania on 25 November 2019, AUGA group, AB (hereinafter – the Company) issued bonds with a total nominal value of €20,000,000. Among other conditions, the Prospectus provides for financial covenants, one of which is an interest coverage ratio of at least two (2). The coverage ratio for the bonds is calculated annually based on the audited annual financial statements. If the Company falls short of the specified interest coverage ratio, the Prospectus provides a period of six (6) months for the correction of the financial situation.

On 19 April 2022, the Company published audited financial statements for 2021. In them, the Company indicated that the specified interest coverage ratio was not met. It therefore, together with the bondholders’ trustee UAB AUDIFINA (hereinafter — the Trustee), noted this fact and set out a six-month period, as provided for in the Prospectus, during which the Company can improve its financial performance and achieve the specified interest coverage ratio for the bonds.

On 17 October 2022, the Company informed the Trustee that the Company remedied the discrepancy within the envisaged period of six (6) months. That is confirmed by the Company’s Consolidated Interim Financial Statements for the six-month period ending 30 June 2022 (hereinafter – the Semi-Annual Report), according to which the interest coverage ratio is 2.1. 

Since the process for remedying financial conditions described in the Prospectus is not unambiguously clear, for the sake of transparency with investors, we hereby give notice that the Trustee for the bonds, acting exclusively for the interests of the bondholders, is convening a meeting of the bondholders. At it, the Trustee will propose that bondholders confirm, based on the Semi-Annual Report, that the Company duly and in a timely manner remedied the interest coverage ratio. Concurrently, the Company underlines that it is committed to cover the interest rates in line with the agreed scheduled.

The meeting will take place at 10:00 on 8 December, in the conference room of the Quadrum North business centre located at Konstitucijos Ave. 21C in Vilnius.

More detailed information about the convening of the bondholders’ meeting, its agenda, and the proposed draft decision is available on the Company’s official website at https://auga.lt/en/investors/green-bonds/, and the Trustee is also informing bondholders separately: Public announcement - Audifina.

Contacts:
Mindaugas Ambrasas, CFO of AUGA group, AB
Phone: + 370 620 67296
Email: m.ambrasas@auga.lt