HB Reavis raises €30m through bond issue

CEE property developer HB Reavis has closed its inaugural bond transaction in Slovakia, raising a total of €30 mln.

The operation brings the total funds raised by HB Reavis on the capital markets since November 2013 to over €63 mln.

The five-year secured bonds attracted an 'overwhelming response' from investors and was more than two times oversubscribed, the Bratislava-based company said in a statement. This enabled a reduction of the initial pricing guidance to 370 bps over the swap rate.

'After a successful entrance into the debt capital market last year in Poland, this transaction demonstrates the confidence that 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 Erste Group's Slovenská sporitelna and Èeskoslovenská obchodná banka, part of KBC Group.

The bonds will be traded on the Bratislava stock exchange. The bonds have a fixed coupon of 4.25% per annum and will mature in August 2019.