In accordance with the audited report, JSC “Development Finance Institution Altum” (hereinafter referred to as - ALTUM) has made a profit of EUR 17.8 million in 2023.

As of 31 December 2023, ALTUM had the gross portfolio of support instruments 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.

In 2023, ALTUM’s financial instruments portfolio has grown by 7.3% (EUR 70 million) in terms of volume and by 3.9% (1,335 projects) in terms of the number of projects. The guarantees’ portfolio decreased slightly in 2023 compared to 2022 (-1 million EUR), while the number of transactions in the guarantees’ portfolio increased by 12.9% (2,009 projects). In 2023, the amount of newly issued guarantees was EUR 99 million (in 2022: EUR 153 million). The volume of the loan portfolio increased by 15% in 2023 compared to 2022 (+47 million EUR). The amount of newly issued loans in 2023 was EUR 142 million (in 2022: EUR 96 million). The general processes in the economy and the slowdown in bank lending have also been reflected in the volumes of ALTUM's portfolios and new transactions.

Reinis Bērziņš, Chairman of the Management Board of Altum:

“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. In these conditions, ALTUM continued active lending, where a strong focus was on lending in the EU Recovery Fund programs, in the large investment loan programme, focusing on financing sustainable 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. This includes 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 reduced collateral requirements for loans up to EUR 100,000 and interest rates for several customer segments, and there is a lot of customer interest in this offer – already in the first months of 2024 there are companies that have submitted applications for financing in the amount of approximately EUR 13 million, moreover, approximately 75% of the applications are from entrepreneurs in the regions.

The fact that in 2023 the amount of financing committed to entrepreneurs in the SMEs and Midcaps’ segment for the implementation of sustainable projects was significantly higher. Thus, in the segments of SMEs and Midcaps and Individuals, the total volume of new transactions contributing to the achievement of environmental goals last year was EUR 60 million, The total planned impact of these projects exceeds 20 thousand tons of CO2e reduction per year.”

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 and have remained at the same level since 2017. 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