Sato, the Finnish residential property investor, has unveiled a €300 mln unsecured bond issue to help grow the portfolio from €2.7 bn to €4 bn over the next five years.
Sato, the Finnish residential property investor, has unveiled a €300 mln unsecured bond issue to help grow the portfolio from €2.7 bn to €4 bn over the next five years.
The company's inaugural bond issue has been offered to European institutional investors and the bonds are expected to be issued by Thursday 10 September.
The Eurobonds have a 5-year maturity and will bear an annual fixed interest rate of 2.25%. The bonds are unsecured and will be guaranteed by two Sato subsidiaries.
Sato said the transaction attracted broad interest from both Nordic and European investors and the order book for the bonds was 'well oversubscribed'. The bonds are to be listed on the Irish stock exchange and are expected to be rated Baa3 by Moody’s, in line with Sato’s corporate rating.
'Sato's strategic goal is to increase the value of the investment portfolio from approximately €2.7 bn currently to €4 bn by the end of 2020,' said Sato chief financial officer Esa Neuvonen. 'Achieving an investment-grade credit rating and diversifying the funding structure support Sato's growth ambitions.'
Deutsche Bank, Nordea Markets, Pohjola Markets and Swedbank acted as lead managers and bookrunners for the transaction.
The bond issue comes days after Sato sold 760 state-subsidised apartments in areas outside its target market of the Helsinki Metropolitan Area. The homes were acquired by local company Y-Foundation for an undisclosed price.
