On February 9, 2022, the Chairman of the Board of Signet Bank Roberts Idelsons took part in the Latvian Capital Market Forum 2022 “Ambition. Growth. Sustainability”, where he held a panel discussion on “How to choose the most suitable way for a company to boost its growth?”. Also at the Forum, the Financial and Capital Market Commission (FCMC) presented the progress made during the year in the implementation of the 10-step programme for the development of Latvia’s capital market and discussed with industry experts and opinion leaders the opportunities and challenges of the Latvian capital market.
The Covid-19 crisis has highlighted the need to diversify sources of funding, including for small businesses (SMEs). Deep, integrated and well-functioning capital markets will facilitate business financing, which is essential for a sustainable economic recovery. Capital markets will help build a strong economy, create new jobs, finance technological innovations and strengthen the global competitiveness of European companies.
Executive Vice-President of the European Commission Valdis Dombrovskis
We all understand well what the Latvian capital market is and why its development is important, but the question is how to promote it and what has not yet been done to make it happen. In my opinion, one giant resource that has not been used so far is state-owned enterprises (SOEs). Currently, the government is working to identify SOEs that could use the stock exchange to attract additional financial capital, thereby revitalizing the Latvian capital market. I also invite entrepreneurs to learn how to develop their business not only using bank loans, but also through the capital market. This will help us develop our businesses, economy and make our country stronger in the future.
Prime Minister Krišjānis Kariņš
In her address at the opening of the Forum, FCMC Chairwoman Santa Purgaile presented the work done for the implementation of the 10-step programme for the development of Latvia’s capital market, as well as further work to be done to expand the opportunities of issuers, promote investor activity and improve the processes for which the public sector is responsible.
The development of the Latvian capital market is one of the priorities of FCMC, and through active communication and involvement of partners, we continue our efforts to achieve faster growth in this segment as soon as possible.
FCMC Chairwoman Santa Purgaile
In the first part of the Forum led by the FCMC Council member Ģirts Rūda, the ambitions of Latvian companies to raise capital were discussed.
The second part of the Forum was devoted to the discussion of alternative opportunities for business growth. Head of the Monetary Policy Department of the Bank of Latvia Uldis Rutkaste gave an insight into how investments in Latvia will be financed, and the Chairman of the Board of Signet Bank Roberts Idelsons chaired the panel discussion “How to choose the most suitable way for a company to boost its growth?”.
Bond issuance has a number of significant advantages. This is an opportunity for ambitious growing companies to obtain financing outside the banking sector on more favourable terms than a bank loan. And the process is rather simple and affordable. In turn, the added value of venture capital is the acquisition of additional capital and involvement of investors in promoting company development and building its value. Often, such involvement creates an opportunity to access capital markets and continue growth to another level.
Chairman of the Board of Signet Bank, Roberts Idelsons
In the third part of the Forum, experts presented the experience of various companies and discussed whether sustainability is possible in all areas.
The Forum aims to promote expert discussions and cooperation between institutions in order to develop the Latvian capital market and make the most of its potential. A developed capital market facilitates investment inflows, both domestic and foreign, to Latvia, opens up wide opportunities for local and foreign entrepreneurs to attract financial resources, and gives investors an opportunity to invest in the development of the Latvian economy.
Watch the video recording of the Forum:
About Signet Bank
The bank was founded in 1992 as Latvijas Biznesa banka. Since 2013, it has focused its strategy on servicing entrepreneurs and their businesses, with an emphasis on high-quality capital management and structuring of investment projects. Signet Bank’s shareholders are nine Latvian and international private investors.