2024/04/18
A company, related to the real estate (NT) development company “Realco“, called ”Sostinės bokštai“ will begin publicly issuing a new portion of bonds worth 6 million euros for the ambitious business center project “Hero“ in Vilnius starting on April 30th. This is already the third tranche of bonds issued for this project. The bond issuance will be conducted by the terms of the base prospectus approved by the Bank of Lithuania on March 12, 2024.
“In 2023, two non-public stages of bond issuance were highly successful and demonstrated that the market finds this project attractive. We aim to expand the circle of bond buyers, this time offering opportunities for retail investors to contribute to the financing of the “Hero“ business center project. All funds raised will be allocated to the construction of this project“, - says Julius Dovidonis, CEO of Realco.
The securities offered to investors will be redeemed in May 2026, with the guarantee of performance being land with buildings pledged as collateral. Bondholders will receive semi-annual payments at a rate of 6-month EURIBOR + 6% annual interest. The nominal value of one bond is 1000 euros.
The bond issuance will be distributed in Lithuania, Latvia, and Estonia by “Redgate Capital“ and Šiaulių Bankas. After the issuance, it is planned to list it on the “Nasdaq Vilnius“ alternative stock exchange market “First North“.
The signing period for the bonds to be issued by Realco will last from April 30th, 2024, to May 14th, 2024. The issuance date for the bonds is set for May 20th.
During the two previous non-public bond issuances for the “Hero“ construction project, a total of 13.5 million euros was raised. This represents 12% of the total project value, which amounts to 112 million euros. In total, it is planned to borrow up to 67 million euros for this project on the market.
“Market participants value modern, high-quality, and sustainable real estate assets that will gradually reshape the face of the capital's office centers. That is exactly what “Hero“ business center in Vilnius‘ central business district will be like, offering truly groundbreaking spaces for businesses. Therefore, the two previous non-public bond issuance stages were highly successful. We do not doubt that the third tranche of bond issuance will also attract investors“, – says J. Dovidonis.
“We are a well-known player in the market, having developed not only many large-scale commercial projects but also successfully implemented residential projects. We feel the investors' confidence, so we do not doubt about the success of the “Hero“ project and its‘ smooth implementation“, – the spokesperson shares.
“Hero“ business center rising in the capital's central business district will add 31.6 thousand square meters of leasable space for class A offices in Vilnius, with 430 parking spaces in an underground parking lot. Special attention is paid to sustainability and ensuring a healthy work environment. The developers of the A+ energy-efficient business center aim to achieve the first WELL Gold international healthy building certification in the Baltics, as well as the Breeam Excellent certificate for sustainable buildings. The construction of the business center is planned to be completed in the second quarter of 2025.