The Financial and Capital Market Commission (FCMC) has created a support mechanism for companies that intend to raise funding in the Latvian capital market.
The support mechanism includes non-financial advice, as a result a potential issuer receives an assessment and recommendations on what should be improved in order to enter the Latvian capital market. The support mechanism may be used by private companies, as well as by public and local government capital companies. Both companies intending to issue shares and those that intend to raise funding by issuing bonds may apply for advice.
Important Latvian capital market players and experts from the stock exchange, investment banks, FCMC, as well as certified consultants of the Baltic Stock Exchange, are participating in the consultation process.
In order to apply for the support mechanism, an application form should be completed on the FCMC website accompanied by the documents indicated. Thereafter, the FCMC will provide an answer regarding the admission to the support mechanism within 10 days and will ask for additional information, if necessary. A cooperation agreement is then entered into with the company. Within 30 days of the submission of last document, an assessment of readiness of the potential issuer to participate in the capital market will be drawn up in cooperation with the institutions involved. At this time, the potential issuer may be invited to a discussion with the assessment preparers in order to provide additional information.
If everything runs smoothly, the company receives an assessment that enables improvements and entry to Latvia’s capital market. A binding offer may also be made for the company: a member of the support mechanism working group or its representing company makes an offer of a service for the potential issuer to complete the issuance process and commits to working with the potential issuer.
|Type of document||Regulated market||Alternative market|
|Copy or extract of the minutes of the meeting of the competent administrative body containing the decision or certifying the intention to participate in the support mechanism||+||+|
|Presentation/description in free form of the business activity, characteristic business performance data, indicators, targets attained||+||+|
|Information on the company’s plans, amount of funding needed, financial forecasts, objectives for which the funding is needed||+||+|
|The statutes of the company. If the company has any controlled entities (group of companies), also the statutes of such subsidiary or associate companies||+||+|
|Audited annual accounts of the company for the last three financial years drawn up in accordance with the IFRS standards (in the case of a group, both the annual accounts of the parent company and the consolidated annual accounts of the group)||+|
|Audited annual account of the company for the last financial year (preferably annual accounts for the last three financial years)||+|
|An overview of the company’s extraordinary balance sheet, profit and loss account and cash flow for the last quarter or half year||+||+|
|Current statement (EDS printout) on the state of corporate tax payments (statement of or absence of tax debts)||+||+|
|Information on dividends paid to the company over the last three years||+||+|
|Rules of the company’s management board and council (if any)||+||+|
|Structure of the company’s members or shareholders and information on the beneficial owners. Agreement between members or shareholders of the company (if applicable and admissible)||+||+|
|Strategy for the operation of the company||+||+|
|Organizational structure of the company and information on the number of employees employed in the company||+||+|
|Company’s ESG report or information that it will be prepared||+||+|
|Corporate governance policies or equivalent documents (if any)||+||+|
|Information on the company’s substantial debt liabilities (period: last full reference year and until the submission of documents; amount of debt/liability: above EUR 10 000). If the company’s shares or capital shares are pledged or otherwise encumbered, please indicate this||+||+|
|Information on the company’s involvement in material infringement and/or court proceedings as a defendant/party||+||+|
|Information on effective adverse administrative or judicial decisions and/or information on legal obligations imposed on the company||+||+|
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Should you have any questions, please contact the FCMC; contact persons:
If you want to become a member of the working group of support mechanism and contribute to the development of the Latvian capital market, please send your application to e-mail: firstname.lastname@example.org. Please indicate the institution represented, as well as the motivation behind your decision to join the working group. We will contact you to agree on the further steps.