For the second year in a row, the Baltic Capital Markets Conference, the largest capital markets conference in the Baltics, was successfully held on the 12th of October, bringing together more than 350 representatives of local companies and investment professionals from the Baltic States. The conference provided an opportunity to discuss Baltic capital market developments and issues among business and investment experts as well as at the national level. It also provided a platform to jointly outline plans for the near future development of the capital market, taking into account the business environment and economic situation in the Baltics.
Krišjānis Kariņš, the Latvian Minister of Foreign Affairs, opening the conference, stressed that the capital market in the Baltic States has a great potential for growth and that our common goal is quite simple - to provide liquidity in the Latvian market and to get rid of political fears and be more open to change.
"Baltic companies have reached a stage of development where they are ready - and some companies are already doing so - to export their business and acquire companies in Europe and the wider world. To facilitate this, we need to target capital markets with high growth potential. This will lay the foundations for accelerated economic growth and higher levels of social welfare."
At the opening of the conference both Santa Purgaile, Deputy President of the Bank of Latvia, and Kaarel Ots, Chairman of the Board of Nasdaq Tallinn and CEO of Nasdaq Baltic, emphasized that in order to boost the development of the Baltic capital markets and facilitate productive capital flows, the Baltic markets must be united.
"Capital markets serve as a true reflection of our collective aspirations for a brighter future," Santa Purgaile highlighted at the conference.
"It is a great pleasure that, along with our partners, we have been able to foster valuable discussions on such a wide range of topics for the second year in a row. This conference demonstrates the industry's commitment to developing a productive and development-oriented financial future in the Baltic States. I am convinced that the discussions and shared knowledge that we bring to the conference each year provide an important basis for a sustainable and dynamic future of the Baltic capital markets. Although capital market development in the Baltics has been slower compared to other regions, it is clear that we are on the right track!" comments Roberts Idelsons, Chairman of the Board of Signet Bank.
The conference covered a wide range of industry topics with the participation of 25 experts and took place in five panel discussions. Below are some of the most valuable insights from each of them:
During the discussion, experts noted that a successful IPO not only brings financial benefits, but also improves a company's visibility and reputation. IPOs can open doors to new partnerships, customers and markets, creating additional growth opportunities. For his part, Mtibelishvily Irackly, Managing Director, Citi, stressed that "For an IPO to be successful, there must be macroeconomic certainty in the country".
The panel discussion provided valuable insights into the Baltic market, highlighting the demand for bond investments and focusing on expanding financing options. The discussion concluded that high-yield bonds in the Baltic market are generating demand, but in the process, shareholder reputation is also a major consideration due to it being an important part of credit risk assessment. Although the financial sector is progressing, experts stressed that there are still regulatory differences between the Baltic countries. They agreed on the need to increase access to finance for SMEs in the Baltics and consider that simple and standardized securitization is necessary for capital market development.
The panelists were convinced that state-owned companies will eventually need to enter the capital market. This step can promote transparency, efficiency and accountability, benefiting the whole economy.
The panelists highlighted the advantages of dual listings, which allow companies to gain a broader investor base. By listing on multiple exchanges, companies can attract investors from different regions, improving their visibility and growth potential. And different stakeholders, including regulators, market participants and policy makers, need to work together to foster an environment conducive to market growth. The experts also expressed the idea that capital market development requires a joint effort or, as Daiga Auziņa-Melalksne said at the conference:
"Sometimes we say it takes a village to raise a child - just like in capital market development and successful listings: knowledgeable investment banks, auditors, stock exchange, CSD, legal advisors, PR firms and more. Cooperation and communication between market participants is key!”
The panel discussion focused on the unique characteristics of Baltic family offices, highlighting their role as flexible and patient sources of capital. Experts recognized that capital from family offices is like water flowing through rocks and filling cracks, pointing to it as a potential source of funding. They also stressed that family offices are seen as a serious source of long-term capital, while export-oriented companies can potentially attract more interest from international investors.
Full photo report available HERE.
"Baltic companies have reached a stage of development where they are ready - and some companies are already doing so - to export their business and acquire companies in Europe and the wider world. To facilitate this, we need to target capital markets with high growth potential. This will lay the foundations for accelerated economic growth and higher levels of social welfare."
At the opening of the conference both Santa Purgaile, Deputy President of the Bank of Latvia, and Kaarel Ots, Chairman of the Board of Nasdaq Tallinn and CEO of Nasdaq Baltic, emphasized that in order to boost the development of the Baltic capital markets and facilitate productive capital flows, the Baltic markets must be united.
"Capital markets serve as a true reflection of our collective aspirations for a brighter future," Santa Purgaile highlighted at the conference.
"It is a great pleasure that, along with our partners, we have been able to foster valuable discussions on such a wide range of topics for the second year in a row. This conference demonstrates the industry's commitment to developing a productive and development-oriented financial future in the Baltic States. I am convinced that the discussions and shared knowledge that we bring to the conference each year provide an important basis for a sustainable and dynamic future of the Baltic capital markets. Although capital market development in the Baltics has been slower compared to other regions, it is clear that we are on the right track!" comments Roberts Idelsons, Chairman of the Board of Signet Bank.
The conference covered a wide range of industry topics with the participation of 25 experts and took place in five panel discussions. Below are some of the most valuable insights from each of them:
- "Baltic IPO Opportunities and Challenges of Today", moderated by Irmantas Norkus, Partner at COBALT Lithuania and attended by experts from investment banks Citi, LHV Bank and leading Estonian investment firm Infortar, as well as Latvian local companies airBaltic and Alūksnes putnu ferma.
During the discussion, experts noted that a successful IPO not only brings financial benefits, but also improves a company's visibility and reputation. IPOs can open doors to new partnerships, customers and markets, creating additional growth opportunities. For his part, Mtibelishvily Irackly, Managing Director, Citi, stressed that "For an IPO to be successful, there must be macroeconomic certainty in the country".
- "The Baltic Bond Market - A Stable Source of Financing for Local Entrepreneurs", moderated by Edmunds Antufjevs, Head of Investment Banking, Signet Bank. The discussion was attended by financial and legal experts from the EBRD, Eleving Group, Cobalt Latvia and Lithuania's BeMyBond Platform. Juris Gulbis, Chairman of the CleanR Group Management Board and Sander Pikkel, Head of Brokerage at LHV Bank shared their capital market experience.
The panel discussion provided valuable insights into the Baltic market, highlighting the demand for bond investments and focusing on expanding financing options. The discussion concluded that high-yield bonds in the Baltic market are generating demand, but in the process, shareholder reputation is also a major consideration due to it being an important part of credit risk assessment. Although the financial sector is progressing, experts stressed that there are still regulatory differences between the Baltic countries. They agreed on the need to increase access to finance for SMEs in the Baltics and consider that simple and standardized securitization is necessary for capital market development.
- "The role of Baltic companies in the development of local capital markets", moderated by Maris Vainovskis, Managing Partner, Eversheds Sutherland. The panel facilitated experts from Riga City Council, Latvian Ministry of Finance, Nasdaq Tallinn and EPSO-G.
The panelists were convinced that state-owned companies will eventually need to enter the capital market. This step can promote transparency, efficiency and accountability, benefiting the whole economy.
- "Which international markets add value for Baltic issuers?", moderated by Daiga Auziņa-Melalksne, Member of the Board of the Baltic Institute of Corporate Governance. The panel included experts from Bank of America, Nasdaq CSD SE, Ignitis Group and KPMG.
The panelists highlighted the advantages of dual listings, which allow companies to gain a broader investor base. By listing on multiple exchanges, companies can attract investors from different regions, improving their visibility and growth potential. And different stakeholders, including regulators, market participants and policy makers, need to work together to foster an environment conducive to market growth. The experts also expressed the idea that capital market development requires a joint effort or, as Daiga Auziņa-Melalksne said at the conference:
"Sometimes we say it takes a village to raise a child - just like in capital market development and successful listings: knowledgeable investment banks, auditors, stock exchange, CSD, legal advisors, PR firms and more. Cooperation and communication between market participants is key!”
- "Baltic Family Offices Gaining Ground in the Baltic Capital Markets", moderated by Kaidi Ruusalepp, Funderbeam.
The panel discussion focused on the unique characteristics of Baltic family offices, highlighting their role as flexible and patient sources of capital. Experts recognized that capital from family offices is like water flowing through rocks and filling cracks, pointing to it as a potential source of funding. They also stressed that family offices are seen as a serious source of long-term capital, while export-oriented companies can potentially attract more interest from international investors.
Full photo report available HERE.
