Capital Park Group, a Polish property investment firm majority-owned by Patron Capital Partners, said on Monday that it has raised nearly EUR 24 mln from Polish institutional and private investors through a public bond issue aimed at financing the construction of its office projects in Poland.

Capital Park Group, a Polish property investment firm majority-owned by Patron Capital Partners, said on Monday that it has raised nearly EUR 24 mln from Polish institutional and private investors through a public bond issue aimed at financing the construction of its office projects in Poland.

In a statement, Capital said demand 'significantly exceeded the number of bonds on offer with over 180% of interest in the bonds'. Noble Securities acted as authorised advisor.

The bond issue was priced at 500 basis points over six-month Wibor, Poland’s interbank lending benchmark. The bond matures on 9 July, 2015.

Capital Park intends to introduce the bonds to trading on the Catalyst market, which is a debt instrument market operated by the Warsaw Stock Exchange, and the BondSpot market, which has been growing strongly since its inception in September 2009.

At least 60% of the proceeds will be used to finance the construction of the Eurocentrum office project, whose construction is already under way. Completion of the scheme, which is being marketed by C&W, is scheduled for 2014. The remaining proceeds will be used to finance several other Polish office and retail projects.

Commenting on the successful bond issue, Jan Motz, president of the Capital Park management board, said: 'Capital Park’s debt ratio (LTV) is at approximately 30%. Our solid financial standing, coupled with our belief that the Polish market will continue to grow in the next few years means that Capital Park has become synonymous with quality investment opportunities in the Polish real estate market.'

Founded in 2003, Capital Park manages a portfolio worth some EUR 300 mln.