Institutional investors have acquired Echo Investment's bonds with a total value of PLN 195 million. The obtained funds will be allocated to the company's development, particularly in the promising residential sector.
The bonds have a 4-year maturity. Their interest rate is based on the WIBOR 6M variable rate plus a margin for investors. The agent of this new issue is mBank S.A. Echo Investment plans to allocate the money obtained from the bond issue to finance the development of its business and to repay the bonds maturing at the end of Q1 of this year. The company currently has over 1 million square meters of apartments and commercial space under construction and in preparation.
“Echo Investment enjoys the confidence and excellent cooperation with financial institutions. Last year, we obtained PLN 250 million and €52.8 million from the issue of bonds, which were used to strengthen our position in the strategic residential business and to expand our land bank, where we will build further urban, mixed-use 'destination' projects. Thanks to the placement of another issue and confidence of the financial market we can implement our strategy faster, manage our capital more effectively and look at the future prospects,' says Grzegorz Iwański, Financing Department Director at Echo Investment.
In February this year, Echo Investment concluded a preliminary agreement for the purchase of a 66% stake in the Wrocław-based property developer Archicom, as a result of which the Echo-Archicom group will become the biggest residential developer in Poland.
The issued bonds are not secured and will be entered into the market in the alternative trading system of the Warsaw Stock Exchange.
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