Fastlink Returns to Bond Market, Seeks Up to 8 Million Euros

Lithuanian telecommunications firm Fastlink is returning to the bond market, aiming to secure up to 8 million euros in a new issuance. The primary purpose of this fundraising is to refinance existing bond obligations, a move the company's founder and CEO, Vitalijus Romualdas Andrijauskas, believes will lower borrowing costs. The savings generated will then be reinvested into further business development.

Fastlink previously issued two bonds in 2024, totaling 8 million euros, with interest rates of 12% and 9%. Andrijauskas explained that the new bonds, carrying lower interest rates, will enhance free cash flow available for expansion. Funds from earlier issuances were directed towards expanding the fiber optic network, increasing server capacity, developing new services, and automating processes.

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By issuing a new bond, we will be able to refinance the debt on more favorable terms. Since the interest rates on the new bonds will be lower than those of previous issues, this should increase free cash flow, which we can allocate to development.

The company reported strong financial performance in 2025, with revenues growing approximately 46% to 8.8 million euros. EBITDA profit reached 4.8 million euros, and net profit was around 2.0 million euros. Fastlink maintained high profitability margins, with an EBITDA margin of 54.6% and a net profit margin of about 23%. Its assets grew to 19 million euros by the end of 2025, following five consecutive years of at least 25% annual growth in revenue and profit.

According to data from the Communications Regulatory Authority (RRT), Fastlink has increased its market share in the fiber optic internet service segment from 2.0% to 2.9% since 2023. The company aims to expand its fiber optic network coverage in Vilnius from the current 26% to 30% by the end of 2027. Tadas Teresevičius, head of OSUM Securities, noted that Fastlink's bond issuance stands out in the Lithuanian market, which is currently dominated by real estate and financial sector issuers. He highlighted the telecommunications sector's traditionally lower cyclicality due to essential services and long-term contracts.

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The telecommunications sector is traditionally considered less cyclical in the investment environment, as companies provide services that consumers typically do not abandon even when the economic situation changes. Moreover, most contracts are fixed for several years.