German listed residential landlord Adler Real Estate has delayed a planned €150 mln convertible bond issue because of the upcoming ‘Brexit’ referendum in the UK.
Adler said it had decided to postpone the issue, scheduled for Wednesday, by one month ‘in light of ongoing adverse market conditions and in particular the growing uncertainty around the upcoming referendum on the United Kingdom’s membership in the EU’.
The company announced last week that its supervisory board had approved the issue, which was expected to attract a 25-30% premium on the volume weighted average price of Adler’s Frankfurt stock listing. It will now be launched in the form of a subscription rights offering on 15 July.
The funds raised will be used to refinance existing loans and bonds with comparatively high interest rates as well as financing future acquisitions and modernising the company’s existing real estate portfolio.
Last year Adler cancelled a planned bond issue designed to underwrite its takeover of Berlin peer Westgrund because of the impact of the Greek euro crisis on global stock markets.
