After the success of the January issue, Echo Investment starts selling a new series of bonds for individual investors. The developer will again issue securities with a total nominal value of up to PLN 50 million.
The January issue addressed to individual investors met with great interest. Investors placed subscriptions for series K bonds with a value of over PLN 233 million, therefore the reduction rate was 79%, and the oversubscription was more than four times. From February 22, 2022, the company starts the issue of series L bonds, the interest rate of which is based on the WIBOR 6M rate increased by a margin of 4%. The offer starts on February 22 and is scheduled until March 8, 2022. The Offering Agent is Powszechna Kasa Oszczędności Bank Polski S.A. Branch – Brokerage House in Warsaw. The maturity of the bonds will be 4 years.
“We plan to use the money obtained from the issue of bonds to finance business development, in particular housing. Last year, we took over a controlling stake in Archicom, a residential developer from Wrocław. At the end of the third quarter of 2021, the entire group had approximately 140 projects under construction and preparation with a total usable area of 1.5 million sq m. The excellent reputation of Echo Investment, a large bank of attractive plots securing projects for the next 5 years, maintaining a healthy level of debt and a high cash position are a good starting point for the future development and further strengthening of the Group,” says Maciej Drozd, Echo Investment’s vice president for finance.
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 almost doubled during this period, which is largely due to the acquisition of Archicom. After three quarters of 2021, the Group generated PLN 117 million of net profit.
The company has been issuing bonds for individual investors since 2014. So far, it has placed among them securities with a total value of over PLN 680 million, of which PLN 384 million is still traded on the stock exchange, and the rest have been redeemed at maturity.
