HB Reavis raises PLN 220 million in bond issue programme
International real estate developer HB Reavis has successfully completed the issue of a new series of its PLN 500 million bond programme established for the Polish market, raising €51.9 million / PLN 220 million.
This latest issue represents not only the largest tranche in the history of the HB Reavis Group but also the largest bond issue achieved by a commercial real estate developer in Poland this year, demonstrating continued investor confidence in the strategic growth of the company.
HB Reavis placed 4.5-year bonds with a floating coupon rate of 420 bps above 6-month WIBOR. After swap into EUR fix-rate, this tranche carries cost of corporate debt at 4.05 percent p.a.. The securities attracted demand from a significant number of returning investors as well as new investors, with 70 percent taken up by investment funds, 18 percent by banks and the remainder by private banking clients.
This second tranche has consumed over 60 percent of HB Reavis’ PLN 500 million (approx. €116m) Polish bond programme, at the same time bringing the total raised to PLN 320 million (approx. €75 million) following the first bond issue in Q4, 2016. The proceeds from this latest issue, carried out in cooperation with mBank and Haitong Bank acting as arrangers, will support the company’s international acquisition and development strategy.
Marian Herman, Group CFO at HB Reavis said, “The interest in our latest bond issue exceeded our expectations and has served to further strengthen HB Reavis’ reputation amongst subscribers in the Polish bond market. We are very pleased to see a large number of recurring investors as well as welcome new investors who decided to invest in HB Reavis credit for the first time.”
Press release by HB Reavis.