“We are looking in IPO as our next logical step”, Guntars Levics and Linda Rirdance, CleanR Grupa

The waste management company CleanR Grupa, based in Riga, Latvia, is issuing a bond with a volume of up to EUR 15 million (private placement). The coupon is 6.00%-7.00% p.a. +3M Euribor. The capital is to be used to increase and diversify Group revenues and EBITDA the company is planning M&A and greenfield projects. Guntars Levics, Board Member, and Linda Rirdance, Board Member and CFO, explain the strategy in an interview with BOND MAGAZINE.

BOND MAGAZINE: In which segments is CleanR active?

Levics: The Group is a market leader for provision of environmental services in Latvia. The history of the Group dates back to 1944, commencing its operations as a road transport company of the Riga City Public Works Department. Over the years the Group continued to expand its services, including in the property management segment, road maintenance services, as well as wide range of waste management. In 2014, the Existing Shareholder Mr Guntars Kokorevičs acquired a 100% stake in the Issuer. Since then, the Group has continued its expansion by launching one of the largest waste sorting and recycling centres (including "Nomales" and “Vides Resursu centrs”), as well as through its investment activities, including acquisition of 50% stake in road building and maintenance company SIA “Roadeks” and a 30% stake in producers responsibility system for waste management company SIA “Zaļā josta”. Notably, the Group is also a market leader in provision of innovative cleaning solutions for the office premises, shopping malls and production areas using robotic and nano technologies, as well as spray-wash equipment. Overall, the Group employs around 1400 employees and offers services in more than 500 facilities across Latvia. The quality, environmental, occupational safety and energy management systems of the Group comply with international standards ISO 9001:2015, ISO 14001:2015, ISO 45001:2018 and ISO 50001:2018.

Our key brands are CleanR, Vizii, Vizii Urban, Zaļā Josta and CleanR Verso. CleanR is well-known for the provision of household waste management services. It has been operating in the market since 1944, providing services in the municipalities of Riga, Liepaja, Jurmala, Stopini, Ozolnieki, Incukalns, Jelgava and others. The first company in Latvia that started separate bio waste collection. In December 2022 commissioning of new polymers recycling facility is planned to expand the Group’s vertical integration and commitment for circular economy.

Vizii provides premises cleaning and property management services.  The major customers include large shopping centres, office owners and corporate clients. In addition to the services provided by standard house management departments, the clients are also provided with maintenance services of the area adjacent to the buildings, cleaning of premises and other services.

Vizii Urban: The brand is known for provision of maintenance services for urban territories and roads, as well as building of roads via subsidiary SIA “Roadeks”. Services include daily sanitary territory maintenance, cleaning of public areas, as well as specialized service for public roads maintenance in winter seasons. Major clients include municipalities of Jurmala, Rezekne, Tukums, Liepaja, Valmiera and Riga cities as well as largest retail brands, including Maxima, Rimi, Neste, Spice, Knauf.

Zaļā Josta is engaged in management of used packaging and sustainable waste management. The brand engages in activities related to producers’ responsibility systems. Producers’ responsibility systems enable producers to have an exemption from packaging tax by voluntarily joining Zaļā josta which ensures collection and recycling of used packaging.

CleanR Verso is one of the largest commercial and industrial waste management services providers in Latvia. In particular, the entity specializes in construction waste and bulky waste collection as well as sorting of separately collected recyclable waste. It is the fastest growing business segment in the portfolio of the Group. In 2020 the Group established a construction waste sorting and processing centre “Nomales” and will put into operation automated packaging sorting line at the end of 2022. CleanR Verso is an established model for developing standards for sorting and recycling construction waste in Latvia.

BOND MAGAZINE: What percentage of sales do you achieve in which segment?

Rirdance: The main segment of the Group regarding turnover is household waste management, followed by industrial and commercial sector waste management. Regarding turnover composition by segment 48% amounts to household waste management, while second largest position – industrial and commercial sector waste management to 14%. Regarding EBITDA composition by segment, 59% amounts to household waste management, while second largest position – sorting of household waste – to 20%.

The Group operates in the territory of Latvia. The Group owns two sorting facilities located in Riga city, two sorting facilities in Stopini municipality, another sorting facility in Babite county and a recycling centre “Gurnicas” (under construction) in Kekava municipality. The Group is the largest waste management services provider in the capital city of Riga. The operations of the Group include servicing largest cities in Latvia and number of municipalities, including Riga, outskirt municipalities of Riga, Liepaja, Jurmala, Stopini, Ozolnieki, Incukalns, Jelgava, Valmiera, Rezekne, Tukums.

BOND MAGAZINE: How do you intend to use the capital from the bond issue?

Rirdance: In order to increase an diversify Group revenues and EBITDA we are planning to invest in M&AS and greenfield projects at least EUR 15 mln. Main focus is on circular economy an long term sustainability, as well as increasing Group´s presence in areas where we are not present or present as minority player, including facilities and road construction. Specifically:

- Purchase of 40% Zala Josta: EUR 4 mln
- acquisition of territories´ management business: EUR 6,5 mln
- acquisition of a waste management company: EUR 1,5 mln
- investment in a road construction business: EUR 2,5 mln
- expanding the operation of the plastic factory by starting the production of boards: EUR 2,5 mln

BOND MAGAZINE: How solid can you plan sales and EBITDA?

Rirdance: Group`s turnover reached EUR 54 mln in 2021. In 2022 it is planned to reach EUR 68 mln. The Group is a well-known industry consolidator with proven track record. Since 2014 the Group has engaged in more than five M&A transactions and aims to continue its growth in new business lines with M&A activities in the future. To diversify its services portfolio, in 2022 the Issuer commenced the acquisition of shares in SIA “RSC Noma”, a major construction and demolition waste management company. At the date of the Terms of the Notes Issue the approval on acquisition transaction is pending with the Competition Council of Latvia.
To increase and diversify the revenue and EBITDA of the Group, it is planned to continue the Group’s investment strategy in M&A activities and greenfield projects in the amount of at least EUR 10 million. In particular, the planned transactions include acquisition of a waste management company, road construction business, territories’ management business, acquisition of 40% stake in SIA “Zaļā josta”, as well as expansion of operations of the plastic recycling factory.
The financial strategy of the Group is based on circular economy principles and long-term sustainability goals. In turn, the Group also aims to increase its presence in those markets where the Group is not currently operating or is a minority player.

BOND MAGAZINE: You're a growth company, investors want stocks in growth companies, not bonds.

Rirdance: We are looking in IPO as our next logical step. Now we are focusing on growth and restructuring our corporate structure and implementing ESG policies and reporting. Group`s sustainability strategy implies a consistent shift towards more lean and efficient organization. The Group continues to strengthen its focus on ESG principles, thereby creating value for all its stakeholders.

BOND MAGAZINE: In which divisions are you planning further acquisitions?

Levics: Territories cleaning and maintenance, gardening business in Latvia and Baltics region as well as road construction business. We also plan to continue vertical integration in waste business, i.e., expand our activities in production of products from recycled waste, for example plastic boards, waste bags etc.

BOND MAGAZINE: What are the key data of your bond?

Rirdance: We are issuing a secured bond with a volume of up to EUR 15 mln and a term of 3 years. The bond is aimed at professional investors and can be subscribed to at Signet Bank, Riga. There is a commercial pledge on shares from material subsidiaries of AS CleanR Grupa. The coupon is 6.00%-7.00% p.a. + 3M Euribor. Interest is paid quarterly. The listing on the Nasdaq Baltic First North segment is scheduled to take place within 12 months of the issue. The covenants are as follows: EBITDA Inerest Coverage Ratio of at least 3.0x, minimum equity/asset ratio of 30% and a maximum Net Debt/EBITDA ratio of 3.5x

The interview was conducted by Christian Schiffmacher,
Picture: Linda Rirdance, Board Member and CFO © CleanR Grupa

Eckdaten der CleanR-Anleihe


AS CleanR Grupa

Type of bond


Annual coupon

6,00%-7,00% p.a. +3M Euribor

Coupon frequency



3 Jahre

Issue size

up to 15 Mio. Euro

Denomination, placement

1.000 Euro, minimum order 100.000 Euro


EBITDA Interest Coverage mind. 3,0x
Eigenkapitalquote mind. 30%
Net Debt/EBITDA max. 3,5x


Nasdaq Baltic First North


Signet Bank AG, Riga