International real estate developer HB Reavis has announced the successful completion of its first unsecured €46.2 million (CZK 1.25 billion) bond issue on the Czech capital market. This brings the total funds raised by HB Reavis through the Central European capital markets since November 2013 to almost €150 million.
The latest issue was carried out by way of public offer which lasted until 14 April 2016, followed by a private offer to selected institutional investors after HB Reavis reported in its 2015 annual consolidated financial statements a 175 percent increase in consolidated net profit to €245 million. The full amount of the issue including the increased element was subscribed. Over 71 percent of the bond issue was subscribed by institutional investors with the balance taken up by private banking clients.
The issue has been listed on the Prague Stock Exchange. The bonds have a floating annual coupon with a spread of 4 percent above 6M Pribor and mature in March 2021. The unsecured bonds are backed with a HB Reavis Group guarantee and were issued by HB REAVIS Finance CZ s. r. o. The proceeds will be deployed to augment HB Reavis’ acquisition and development process.
“Our debut on the Czech capital market was overwhelmingly successful, which again confirmed investors’ confidence in HB Reavis’ business strategy and financial standing. This issue reinforces HB Reavis’ position as an issuer of unsecured bonds in multiple markets,” said Marian Herman, CFO at HB Reavis.
The bond issue was managed by UniCredit Bank Czech Republic and Slovakia and Komerční banka (Societe Generale Group).
“HB Reavis’ strong annual results demonstrate its financial stability across multiple markets making the company’s bonds a very attractive product for investors in the Czech Republic and the entire region,” said Martin Vinter, Director, Markets, UniCredit Bank.
“Thanks to HB Reavis’ professional approach and its ability to coherently present investors the business case for the bond issue, the joint lead managers successfully placed the entire issue across a wide investor base,” added Jan Pokorný, Executive Director, Structured Financing, Komerční banka.