Finnish listed property company Sponda has issued a EUR 95 mln domestic hybrid bond with a coupon of 6.75% per annum.
Finnish listed property company Sponda has issued a EUR 95 mln domestic hybrid bond with a coupon of 6.75% per annum.
The bond has no maturity date but the company may exercise an early redemption option after five years. The settlement date of the bond is 5 December 2012.
The hybrid bond is to replace one issued in 2008.
'The demand for the hybrid bond from the investors has been extremely high, and it was oversubscribed. Due to the company's improved balance sheet, our aim is to reduce the amount of hybrid bond. This means that after June 2013, the amount of outstanding hybrid bond is EUR 95 mln,' said Sponda’s President and CEO Kari Inkinen.
A hybrid bond is an instrument which is subordinated to the company's other debt obligations and which is treated as equity in the IFRS financial statements.
Nordea Markets is acting as exclusive bookrunner in the transaction.
