AS Baltic RE Group subsidiary completed the private placement of EUR 3 million of profit-sharing bonds at 2.25% yield

Baltic RE Group portfolio

Recently acquired property at 2 Kr. Barona Street
Recently acquired property at 2 Kr. Barona Street

Baltic RE Group portfolio

Recently renovated property at 25 Raina Boulevard
Recently renovated property at 25 Raina Boulevard

SIA Baltic Re Properties, a fully owned subsidiary of AS Baltic RE Group, has completed the private placement of corporate Step-up Profit Sharing Bonds. The total face value of the issue is EUR 3,000,000.00 and it shall be used up for turn-around of the property at 2 Kr. Barona Street, Riga, that has been recently acquired, as well as for acquisition of new properties that align with the Group’s strategy. The bonds are unsecured and have a 5 years maturity, with an annual coupon fixed at 2.25% plus a potential additional variable Step-up Interest Rate Increase up to 2.50%, conditioned to reaching Target Revenues by the Issuer. 

AS BluOr Bank acted as issuing agent.

AS Baltic RE Group already benefits from a positive track record, having issued in 2016 corporate bonds securities, then listed on Nasdaq Baltic. Those bonds included a call premium in the event of early redemption, and the entire issue was redeemed before the maturity by paying the call premium to all bondholders.

Giovanni dalla Zonca, Founder and CEO of Baltic RE Group, says: “We are extremely proud to have completed the placement of bonds with such innovative terms for the Baltic market. The Step-up Profit Sharing mechanism allows a virtuous division of economic success between issuers and bondholders and defines a solid chance of diversifying sources of financing. There are interesting investment opportunities in the real estate industry which can be brilliantly and successfully served by a qualified bond market”

AS Baltic RE Group is a real estate investment company specializing since 2008 in the purchase and management of high-quality real estate properties. As one of the leaders in the Baltic premium segment real estate market, Baltic RE Group implements the best standards of environmentally friendly solutions available on the market in its buildings, which contributes to the wellbeing of the users of these areas.

 

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