State-owned Estonian flag carrier airline Nordica is expanding its fleet with yet another Bombardier CRJ900 jet, the purchase and leasing to Nordica of which was financed by state-owned fleet owner Transpordi Varahaldus OÜ (TVH) issuing €10 million worth of bonds purchased in equal shares by LHV pension funds and LHV Bank.
Late last month, TVH issued €10 million worth of bonds with a maturity of eight years.
According to TVH board member Ergo Blumfeldt, this additional purchase marks the gradual expansion of the business of the company, which previously owned six CRJ900 aircraft, noting that the expansion was preceded by a thorough financial analysis and fulfilment of the current business plan.
According to the company board, TVH's profits for the 2018 financial year are expected to reach nearly €3 million.
TVH is a state-owned company founded to operate as an investment firm, financing and managing fixed assets in the field of transport.
LHV pension funds manager Romet Enok noted that their investment in TVH bonds offers a higher yield than can be found elsewhere on the international market under current conditions.
The new aircraft has already been employed in serving flights for the Scandinavian carrier SAS.
Nordica CEO Hannes Sarapuu said that the current market situation provides opportunities to increase the export volumes of its services.
"If supply currently outweighs demand in Tallinn, then it makes sense for us to be present where we can grow our business profitably," Mr Sarapuu said. "The issuing of bonds by TVH is an excellent example of investors' belief in the sustainability of our plans."
TVH previously issued bonds in 2017, when securities totalling €25 million in value were issued for the purchase of two CRJ900 aircraft.
Editor: Aili Vahtla