As at 31 December 2022 JSC Development Finance Institution Altum (hereinafter – Company) had an outstanding gross portfolio of 1,065 million euros, of which the financial instruments portfolio totalled 964 million euros, comprised of 33,976 contracts, including:

• guarantees portfolio of 481 million euros, the total number of contracts 26,354;
• loan portfolio of 312 million euros, the total number of contracts 6,481;
• investments in venture capital funds for the total amount of 90 million euros, the total number of projects financed by funds 185;
• Land Fund of 84 million euros, the total number of transactions 956.

Since the beginning of the year, the Company’s financial instruments portfolio has grown by 7.6% (68 million euros) in terms of volume and by 9.7% (2,998 projects) in terms of the number of projects.

According to the unaudited interim condensed reporting data, in 2022 the Company generated 11 million euros in profit.

Reinis Bērziņš, Chairman of the Management Board of Altum:

“2022 has passed in very changing economic conditions – already early in the year, indirect impact of the war unleashed by Russia’s aggression in Ukraine started to dominate on business environment, continuing to slow down the economic development already started by the Covid-19 pandemic. In order to help business representatives to ensure successful business operations in these conditions, ALTUM in 2022 opened loan and guarantee programmes for supporting overcoming of consequences of the war, and they will be available throughout the 2023. At the same time, launch of three European Union Recovery and Resilience Facility programmes in the fourth quarter of last year is significant. Those are new financial instruments for projects reducing climate change in the segments of the small and medium enterprises and multi-apartment buildings, ensuring broader availability of sustainable financing in Latvia, as well as support programme for construction of rental houses that will promote availability of housing and economic development in regions. In February 2023, programme for digitalization of companies was opened. The total Recovery and Resilience Facility financing for these four ALTUM programs is EUR 224 million, which will be issued in the form of loans or capital rebate. In the situation of high inflation and expensive energy resources, it is a significant funding that will promote more efficient solutions and in a long-term will reduce the expense burden in the corporate and multi-apartment segments.

Also, at the end of last year, a significant programme was started for support to large investments aiming to stimulate implementation of projects important for Latvia’s national economy. At the end of the year the first loan agreement with Aluksne company Cewood was signed. 2022 was also important with closing the programmes that supported overcoming of the consequences from the Covid-19 pandemic, where we issued EUR 107 million in loans to companies. Also, the investment period in ALTUM-managed Capital Fund closed where work with commenced investment projects continues. The fund has invested in Latvia’s leading companies who are at the top in their sectors. At present investment agreements for a total sum of EUR 42 million have been signed. Throughout the whole period, there has been a stable demand for all ALTUM everyday financial instruments for the support of small and medium enterprises, starting a business, agricultural companies. In 2023 ALTUM will focus on implementation of all existing support programs and development of the new 2021-2027 EU structural funds programme for improving energy efficiency in companies and multi-apartment segments, starting a business, innovations, digitalization, technology transfer and prototyping support in the SME sector. The good financial results of 2022 will be a great foundation for that. In the coming period ALTUM will continue to support Latvia’s national economic growth with its knowledge and competence”.

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.

         Laura Lapkovska
         AS Attīstības finanšu institūcija Altum Investors Relationships Division
         Tel.: +371 26165699
         E-mail: Laura.Lapkovska@altum.lv