As of 31 December 2023, JSC Development Finance Institution Altum (hereinafter – ALTUM) had an outstanding gross portfolio of EUR 1,102 million, of which the gross portfolio of financial instruments totalled EUR 1,034 million, comprised of 35,260 contracts, including:

• guarantees portfolio of EUR 480 million, the total number of contracts 27,694,
• loan portfolio of EUR 359 million, the total number of contracts 6,304,
• investments in venture capital funds for the total amount of EUR 97 million, the total number of projects financed by funds 208,
• Land Fund of EUR 97 million, the total number of transactions 1,054.

Since the beginning of the year, ALTUM’s financial instruments portfolio has grown by EUR 70 million in terms of volume and by 3.9% (1,335 projects) in terms of the number of projects.

According to the unaudited interim condensed reporting data, in the 12 months of 2023 ALTUM generated EUR 18.2 million in profit.

Reinis Bērziņš, Chairman of the Management Board of Altum:

“The year 2023 was marked by a series of challenges in the national economy, which was followed by a cautious and wait-and-see attitude of entrepreneurs and individuals towards new investments. Under these conditions, ALTUM continued active lending, where a great focus was on lending under the EU Resilience and Recovery Fund’s programmes, the large investment loan programme, as well as introducing incentives for specific customer segments. This was also reflected in ALTUM's loan portfolio, which grew by 15% during the year, as opposed to a slight decrease a year earlier. The volume of new transactions last year also increased by 16% compared to 2022. The greatest activity is precisely in the SMEs and Midcaps’ segment, and in general, the greatest activity in loan instruments is for the implementation of energy efficiency and sustainability projects.

Good operational results in 2023 allowed ALTUM to introduce a series of favourable offers for various customer segments - these are benefits for both guarantees’ instruments and direct loans. Including setting a 0% guarantee premium for sustainable projects and a reduction of the guarantee’s premium by 50% for all commercial guarantees. Also, the total loan rate for companies in the SME segment has been reduced by about half, as well as a loan rate of 3.5% has been set for farmers' working capital loans, which created a great demand from farmers - at the end of last year and the beginning of 2024, EUR 26 million have already been committed in these loans. This also affected the increase in the volume of loans in the ALTUM’s portfolio in the Agriculture segment in 2023. In the Individuals’ segment, ALTUM reduced the guarantee’s fee by half in the housing guarantee programme for young professionals.

ALTUM took an important step to activate lending by reducing collateral requirements for loans up to EUR 100,000 and reducing interest rates for several customer segments. The impact of the reliefs on the volumes of new transactions will be visible in 2024-2025, at the same time already in the first months there is a great interest of customers and already in the first weeks there are companies that have submitted applications for financing in the amount of more than EUR 5 million, moreover, approximately 90% of the applications are from entrepreneurs in the regions. Also, interest rate reliefs have been introduced in the segment of business starters and in the loan programme for small loans in rural areas, which are very actively used by regional entrepreneurs. In order to promote lending and the continuation of investment plans of companies even in conditions of high credit rates, ALTUM plans to introduce new solutions in 2024 to activate business financing and promote the growth of the national economy.”.

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 2 February 2024 Moody’s Investors Service (Moody’s) affirmed the Company’s Baa1 long-term issuer rating, with outlook stable, following update of rating methodology. The rating and the short-term issuer rating at P-2, same as affirmed on 16 December 2022. As of 2 February 2024, the Altum’s stand-alone assessment set at current baa3 replaces the withdrawn Baseline Credit Assessment. 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