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

Individual investors subscribed to all L-series bonds offered by Echo Investment. For the second time this year, the developer will issue securities with a total nominal value of PLN 50 million.

Echo Investment has been issuing bonds for individual investors since 2014. Until now, securities with a total value of over PLN 680 million have been placed among them, of which PLN 384 million are still traded on the stock exchange and the rest have been redeemed at their maturity dates. Subscriptions for the L-series bonds started on 22nd February and lasted until 8th March 2022. As previously, investors subscribed for a higher number of bonds than is was offered.

"This is another proff that investors have confidence in Echo Investment, our strategy and projects. We plan to employ the funds obtained from the bond issue mainly to finance the development of our residential business. Our group currently holds a land bank with almost 16 thousand apartments to be built within the next few years. We are ready to increase market share while maintaining high margin on projects", says Maciej Drozd, Echo Investment's Vice-President, CFO.

According to its strategy, Echo Investment intends to continue its growth in the sector of apartments for sale and rent, while maintaining a large scale of operations in commercial properties. In recent years, through its organic growth and the acquisition of Archicom, the Echo Investment Group has become one of the five biggest developers selling apartments in Poland. The value of Echo Investment's assets at the end of the third quarter of 2021 amounted to nearly PLN 6.8 billion and was 25% higher than at the end of 2020. The value of residential assets nearly doubled during this period, largely due to the acquisition of Archicom. After three quarters of 2021 the Group generated a net profit of PLN 117 million.

The offering agent for the L-series bonds was Powszechna Kasa Oszczędności Bank Polski S.A. - the Brokerage House in Warsaw. The bonds have a 4-year maturity date. Their interest rate is based on WIBOR 6M plus a margin of 4%.

The public offering of up to PLN 50 million of the L-series bonds was carried out on the basis of the prospectus approved by the Polish Financial Supervision Authority on 26th November, 2021, as amended by Supplement no. 1. Based on the prospectus, Echo Investment is able to issue up to PLN 200 million-worth bonds in the future.