News Article bonds Echo Investment financing investment Poland
by Property Forum | Investment

Echo Investment is launching a new bond series for individual investors. The developer will issue the securities for a total of PLN 50 million.

The interest rate on K-series bonds is established based on the WIBOR 6M rate increased by a 4% margin. The sale starts on 10 January and is scheduled to 21 January, 2022. The transaction is performed by Powszechna Kasa Oszczędności Bank Polski S.A Oddział – Biuro Maklerskie in Warsaw. The bonds have a 3-year maturity.

The funds obtained from the bond issue is planned to be used by Echo Investment to finance its business development. In 2021 Echo Investment acquired the controlling stake of shares in Wrocław-based residential developer Archicom. After the transaction, the whole Group had approximately 140 projects under construction and in preparation with around 1.5 billion sqm of usable space in total, as at the end of 3rd quarter 2021.

„Echo Investment's strategy assumes development in the sector of apartments for sale and rent, while maintaining a large scale of activity in commercial real estate. In recent years, through organic growth and the acquisition of Archicom, Echo Investment Group has become one of the five largest developers selling apartments in Poland. Our goal is to further strengthen our position while maintaining a high level of margins on projects. Being developed by us the company Resi4Rent is currently the largest flat rental institution in Poland. It is a very promising business. Currently, Resi4Rent leases 2,300 finished apartments and another 6,000 units is under construction and preparation. By the end of 2024, it will have 10,000 premises,” says Nicklas Lindberg, CEO of Echo Investment.

As at the end of Q3 2021, the value of Echo Investment’s assets amounted to almost PLN 6.8 billion and was 25% higher than at the end of last year. The value of residential assets has nearly doubled in that time, which is mainly a result of the acquisition of Archicom group. After three quarters of 2021 the Group recorded PLN 117 million of net profit.

“Excellent reputation of Echo Investment, a large bank of attractive plots securing projects for the next 5 years, a healthy level of debt and a high cash position is a good starting point for future development and further strengthening of the Group,” says Maciej Drozd, Vice-president of Echo Investment responsible for finance.

Echo Investment's bonds are among the most liquid on the Catalyst market. The company has been issuing bonds for individual investors since 2014. So far, over PLN 630 million securities for individual investors have been issued, of which PLN 330 million is still traded on the stock exchange, and the remaining have been properly redeemed.

The issue of bonds up to PLN 50 million is based on the prospectus and its supplement that were approved by the Financial Supervision Authority in November and December 2021.