September 04, 2014

HB Reavis issues 5-year bonds worth €30 million

HB Reavis issues 5-year bonds worth €30 million

HB Reavis has closed its inaugural bond transaction in Slovakia by raising €30 million. This brings the total funds raised by the developer on capital markets since November 2013 to over €63 million.

The 5-year secured bonds attracted an overwhelming response from investors. More than twofold oversubscription enabled reduction of the initial pricing guidance into final spread fixed at 370 bps over swap rate. Strong demand resulted into quick placement of the issue after its launch with investors, with final take-up by insurers (subscribing 33 percent of the issue), banks (32 percent), private banking clients (19 percent) and fund managers (16 percent).

“After successful entrance into debt capital market last year in Poland, this transaction proves the confidence the investors have in HB Reavis property and financing strategy. This bond enables us to further diversify our funding sources whilst extending the debt maturity profile of the Group,” commented Peter Pecník, Head of Financing at HB Reavis.

The issue was arranged and managed by Slovenská sporiteľňa (Erste Group) and Československá obchodná banka (KBC Group).

“The successful issue proved HB Reavis‘ access not only to the bank financing but also to debt capital market and it has built up an investor base for future potential issues. At the same time, the transaction has demonstrated, that despite limited size of and liquidity at Slovak domestic market, an excellent results can be achieved for the debut issuers subject to favourable market conditions, right timing of the issue and cooperation with banks having sufficient investor base,” commented Tomáš Pavlák, Head of Treasury, Slovenská sporiteľňa.

“With this deal, HB Reavis proved its competence as issuer with good reputation and solid performance. This transaction has undoubtedly established the company’s strong position on the Slovak capital market,” added Iveta Komáčková Nováková, Head of Sales Financial Markets, Československá obchodná banka.

The bonds issued by HB Reavis are being introduced to trading on Bratislava stock exchange. The bonds have a fixed coupon of 4.25 percent p.a. and will mature in August 2019.

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