Finnish listed property group Sponda has issued a EUR 130m hybrid bond to Finnish institutional investors to improve the company's equity ratio. Sponda said earlier that the long-term target was an equity ratio of 33% and that it would strengthen its solidity during 2008.
Finnish listed property group Sponda has issued a EUR 130m hybrid bond to Finnish institutional investors to improve the company's equity ratio. Sponda said earlier that the long-term target was an equity ratio of 33% and that it would strengthen its solidity during 2008.
The bond, with a coupon rate of 8.750%, has no maturity date, but Sponda is entitled to call the bond in five years' time. The issue does not dilute the holdings of the company's current shareholders. Sponda said it will apply for public listing of the bond by the end of September 2008. The lead manager of the bond issue was Nordea Markets.
Sponda said the bond issue, along with other financial arrangements agreed earlier this year, ensures the company has the required financing for its planned investments in 2008.
Sponda said it is preparing sales of individual properties in the near future, but did not go into detail.
