Institutional investors have subscribed to bonds of Echo Investment with a total value of PLN 180 million (€38.4 million). The developer will use the funds raised to redeem existing bonds and strengthen the company's leadership position in the Polish real estate market.
The company placed the inaugural issue of 5-year bonds with a total value of PLN 180 million, under a new issue program of up to PLN 500 million. Their interest rate was set based on a variable WIBOR 6M rate plus a margin for investors. The role of Agent, Lead Manager and exclusive Dealer of the issue is performed by Ipopema Securities S.A. Echo Investment plans to spend the money raised from the bond issue to redeem existing bonds maturing in 2024, and consequently to provide further financing for business development.
"In such a difficult time for the financial market, we are particularly glad to have the confidence of our investors. We are focused on maintaining a stable position and pursuing a cautious financial policy. Thanks to our cooperation with Ipopema Securities and the confidence shown by the financial market, we can actively manage the maturity of our debt, implement and redefine our strategy more quickly, manage our capital more effectively and face the future with great confidence", says Grzegorz Iwański, Financing Director at Echo Investment.
"I do admit that the present time for both issuers and investors in the capital market in Poland is objectively difficult, and the complex macroeconomic situation requires a more creative approach to the process of raising capital from investors than was usually the case, which does not mean that "it is not possible. We are looking to the future with optimism, welcoming new business partners on board", comments Marcin Zając, Managing Director, Board Advisor at Ipopema Securities.
The value of Echo Investment Group's assets after three quarters of 2022 amounts to PLN 6.4 billion. The Group also maintains a high cash balance, with nearly PLN 700 million at the end of September.
The bonds issued are unsecured and will be entered on the alternative trading system of the Warsaw Stock Exchange.
