News Article bonds development Hungary Wing
by Property Forum | Investment

Hungarian property developer and investor Wing has completed a €37 million bond issue. With an aggregate principal amount of €37 million, the bonds have a maturity of 3 years and a fixed interest rate of 8.90 per cent. The company has accepted all offers received, intending to use the funds raised from the successful issue to pursue new investment opportunities and launch new real estate development projects.

A total of 37,030 bonds at a nominal value of €1,000 each were subscribed in Wing’s bond issue which closed on 28 March. As a result, one of the leading privately owned property development and investment groups in the Central European real estate market raised a total of €37.03 million in capital. This will enable the company to continue its development plans and growth strategy and accelerate preparations for its envisaged new real estate development projects. 

The company closed the Eurobonds issue with an aggregate principal amount of €37 million and a 3-year maturity at a fixed interest rate of 8.90 per cent. The company informed investors that it would initiate the listing of all bonds issued in the offering on the Budapest Stock Exchange. Since 2016, Wing has been continuously present in the domestic capital market and on the stock exchange through its bond programmes.

„This successful bond issue gives positive feedback that investors have strong confidence in Wing, see further growth potential in the company and are keen to invest in the bonds the company has offered to the public”, emphasised Noah Steinberg, CEO of Wing Zrt.

From a development perspective, 2023 has been an active year for the company and investments will continue this year with improving market prospects. The successful bond issue will help create the conditions for the company to reinforce its existing leadership in the regional real estate development market.

Last December, Wing completed the first phase of the Liberty office-hotel mixed-use project, which included the opening of Budapest's first TRIBE hotel as part of the ibis & TRIBE Budapest Stadium dual-branded hotel. The development of Liberty continues and the second phase is set to be completed this year. 

In addition, development works are underway on the Liget Center office complex, which will be home to RTL Hungary following its opening in the summer. In addition to the Auditorium and Classic buildings for RTL, a new boutique office building, Liget Center Vitrum, will be built on the site, awaiting prospective tenants. A new Tribe hotel is also being built at the airport as a continuation of the Ibis Styles hotel, while construction has started on a new 9,100 sqm warehouse in the second phase of Wing’s latest industrial development, East Gate PRO. The past year has also been intense in terms of residential developments, and the company has successfully delivered its 1,000th apartment under the Living brand.