In accordance with the audited report, JSC “Development Finance Institution Altum” (hereinafter referred to as - Altum) has made a profit of 11.4 million euros in 2022.

As at 31 December 2022, Altum had the gross portfolio of support instruments of 1,065 million euros, of which the gross portfolio of financial instruments 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.

In 2022, the Altum’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. The guarantee’s portfolio increased by 15.9% (66 million euros) in 2022, while the number of transactions in the guarantee’s portfolio increased by 12.9% (2,009 projects). In 2022, the amount of newly issued guarantees was 153 million euros. The volume of the loan portfolio decreased by 1.2% (4 million euros) in 2022. The decrease in the loan portfolio can be explained by a sharp decrease in the demand for Covid-19 crisis support instruments, as entrepreneurs were able to successfully adapt to the new conditions and the extent of the pandemic decreased. The volume of newly issued loans in 2022 was 96 million euros.

Reinis Bērziņš, Chairman of the Management Board of Altum:

“The 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 and programme for digitalization of companies opened in February 2023 was significant. The total Recovery and Resilience Facility financing for these four ALTUM programs is 224 million euros.

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. The 2022 was also important with closing the programmes that supported overcoming of the consequences from the Covid-19 pandemic, where we granted 107 million euros in loans to companies. Also, the investment period in ALTUM-managed Capital Fund closed where work with the started investment projects continues. 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.

Assessing the ALTUM portfolio in terms of the environmental impact from new volumes, which we analyse in the Corporate Governance Report, it is obvious that ALTUM makes a very significant contribution to the achievement of the environmental objectives, both in the Individuals segment and the SME segment. In the Individuals segment, ALTUM’s consistent sales and educational efforts in 2022 resulted in very high level of client interest in the improvement of energy efficiency of multi-apartment buildings and private houses. In addition, it should be noted that the increase in client activity coincided with the change of EU programmes and a significant activity at the end of the current programme. In the SME segment, the interest in energy efficiency, renewable energy and sustainable transportation projects was temporarily decreased by the Covid-19 pandemic and Russia’s invasion of Ukraine as well as the expectations to the start of the Recovery and Resiliance Fund’s programmes, it should be recognized that committed funding to the SME segment in 2022 had a very high CO2 footprint reduction intensity. In the SME segment, the total on the project basis projected reduction is 11,400 tons of CO2 per annum which, together with the impact of the Individuals segment (multi-apartment buildings and private houses), where the reduction is estimated at 7,180 tons of CO2 per annum, makes a major contribution to the achievement of the environmental objectives and development of a sustainable economy.

In 2023 ALTUM will focus on implementation of all existing support programmes and development of the new 2021-2027 EU structural funds programmes. The good financial results of 2022 will be a great foundation for that. ALTUM also in the next period 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