ARTICLES LABELLED WITH TAG financing

Banks loans dominate the financing market for property development, but the stock exchange, EU funds and state aid are emerging instruments, suggested speakers during the lenders vs borrowers panel of SEE Property Forum 2021, Property Forum's annual event in Bucharest.   

MLP Group is set to carry out another bond issue worth €20 million. The debt securities will be issued on November 17th 2021 and repurchased on May 17th 2024.

BIG Shopping Centers Ltd., the controlling shareholder (~95%) of BIG CEE, successfully raised NIS 205 million (approx. €55 million) by issuing secured bonds in the Israeli stock exchange by refinancing the following shopping centres: BIG Fashion Kragujevac, BIG Kruševac and BIG Fashion Outlet Inđija.

The European Bank for Reconstruction and Development (EBRD) is boosting the development of green industrial and logistics real estate with a €72 million mezzanine loan facility to DL Invest Group, a Polish real-estate developer focused on commercial property.

CTP successfully completed another green bond issuance, structured as a dual tranche. CTP raised a total of €1 billion under its recently increased €8 billion EMTN program. The issue included a €500 million five-year tranche, a €500 million ten-year tranche and a concurrent €150 million capped tender offer on the €650 million senior notes due October 2025. Total demand for the issue was around €3.5 billion and the tender offer well exceeded the targeted amount, evidencing and further supporting the solid standing that CTP holds amongst international bond investors less than one year after first entering the market.

Wing held a successful bond auction, issuing green bonds totalling approximately €70 million (HUF 25 billion) through the Bonds for Growth Scheme (NKP) of the Central Bank of Hungary (MNB). In line with international standards and requirements, Wing will use the funds raised through the bonds solely for environmentally friendly projects and assets.

The high inflation rate that averages at 5% across Central and Eastern Europe and its impact on the property sector was debated during the financing panel of CEE Property Forum 2021, Property Forum's first real-life event back in Vienna since 2019 which was attended by over 400 people coming from countries all over the region and beyond.

Marius Persenea, Chief Operating Officer of Romanian real estate developer IULIUS talked to Property Forum about financing, sustainable development and future plans for different market segments.

A consortium of banks, with Pekao Bank as a leader, Bank Gospodarstwa Krajowego and BNP Paribas Bank, granted over PLN 248 million in a construction and investment loan and PLN 15 million in a VAT loan for five Resi4Rent projects with apartments for rent.

During the pandemic, banks continued to finance ongoing commercial real estate projects but they are more careful with financing new ones, looking for higher corporate credentials and imposing more restrictive conditions to fulfil. Monia Dobrescu, Partner at Romanian law firm Mușat & Asociații talked to Property Forum about the pandemic’s effects on client relationships and provided market insight from the legal advisor’s perspective.