7R has completed the issuance of Series D bonds with a nominal value of PLN 52 million (approximately €12.14 million). The bonds were issued for three years and bear interest at WIBOR 6M + 4.25%. The offering was subscribed by institutional investors and selected high-net-worth individual investors.
The proceeds will be used to expand 7R's warehouse portfolio. The margin on the Series D bonds was set at 4.25%, compared with 4.80% in previous PLN-denominated issuances, and below the 5.5% achieved in the EUR-denominated issuance.
"The ability to secure financing on favourable terms is a result of the execution of our financial strategy and the strengthening of the 7R Group's credit profile," said Tomasz Mika, Board Member and CFO of 7R. "The lower cost of debt improves the efficiency of capital allocation and provides us with flexibility to continue scaling the business."
The bond placement coincides with demand for warehouse space reaching 6.8 million sqm last year, marking the second-highest result in history. The compression of vacancy rates across existing stock is translating into increasing occupier demand for new developments.
Piotr Pikiewicz, Head of Debt & Treasury at 7R, added: "The issuance and the margin compression confirm growing investor interest in our credit profile and the quality of our assets."
