Individual investors have subscribed to all offered I-series bonds of Echo Investment. The developer will issue the securities worth PLN 50 million (app. €11.6 million).
“This is another success of Echo Investment in placing public bonds. We are pleased of the trust that investors put in Echo Investment and our strategy. The funds obtained from the I-series bond issue will be used to finance our business development. We have currently over 1.1 million sqm of offices, apartments as well as retail and entertainment space under construction and in preparation.” says Maciej Drozd, CFO of Echo Investment.
The interest rate on I-series bonds is based on the WIBOR 6M rate increased by a 3.4% margin. The sale started on October 11 and the subscriptions ended on October 19, 2018. The offer was participated by Dom Maklerski PKO BP acting as a leader of a consortium with Noble Securities S.A. and Centralny Dom Maklerski Pekao S.A.
Echo Investment has been issuing bonds for individual investors since 2014. So far, it has issued securities for individual investors with a total value of PLN 550 million, of which PLN 350 million is still traded on the stock exchange, and the remaining PLN 200 million has been properly redeemed. The company has also an impressive track record of cooperation with financial institutions which as of now hold Echo’s bonds of PLN 716 million in nominal value. In April 2018, the Financial Supervision Authority approved the prospectus of bonds for individual investors for the amount of PLN 400 million, on the basis of which Echo placed bonds worth PLN 50 million in May. The current I-series was a second tranche offered under this programme.
