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HB Reavis Group issued unsecured bonds worth €40 million

HB Reavis Group, a leading property developer in Central and Eastern Europe, has closed its first transaction of unsecured bond issue in Slovakia by raising €40 million. As a result, since November 2013 HB Reavis Group raised more than €100 million on capital markets in Central Europe.

The bonds, backed by the guarantee provided by top holding company of HB Reavis Group, were issued by HB Reavis Finance SK II s. r. o. From consolidated point of view of the Group the issue is therefore treated as unsecured. The issue was offered to investors in Slovakia via public offering from 16 March to 26 March 2015. The bonds, labelled “HB Reavis 2020” were issued on 30 March 2015 and were subscribed by almost 200 investors, of which over 40 percent were private banking clients, almost 32 percent banks and 28 percent institutional investors.

“After last year’s entrance into the Slovak capital market this transaction shows investors’ confidence towards HB Reavis Group, which continues successful implementation of its business and financial strategies. As this has been the first issue of unsecured bonds by HB Reavis Group ever, we appreciate the confidence of investors even more,” said Marián Herman, CFO at HB Reavis.

The bond issue has been managed by Slovenská sporiteľňa (Erste Group) and Československá obchodná banka (KBC Group).

“The successful issue has demonstrated the ability of HB Reavis to address private banking clients with excellent potential for the future. It has also confirmed that, under suitable conditions, timing of the transaction and cooperation with banks with sufficient client base, it is possible to achieve an outstanding result even on a relatively illiquid market,” said Tomáš Pavlák, Head of Treasury, Slovenská sporiteľňa.

“The issue of the corporate bonds “HB Reavis 2020” in the period of extremely low interest rates has attracted interest of investors of all market segments and acknowledged the importance of diversification from the point of view of an issuer as well as investors,” added Iveta Komáčková Nováková, Head of Sales Financial Markets, Československá obchodná banka.

The issue has been approved for listing at the Bratislava Stock Exchange. The bonds have a fixed annual coupon of 4.25 percent and are maturing in March 2020.

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