Immofinanz made progress in its effort to separate its CEE business from its German and Austrian residential business by offering €375m in bonds in the company Buwog. Buwog is a residential spin-off from Immofinanz. The 10-year bonds, redeemable in cash or in Buwog shares, carry a coupon of 1.5% and an exchange premium of 15 percent.
“These exchangeable bonds will release a significant part of the liquidity tied up in our Buwog shares for alternative uses,” said Immofinanz CEO Eduard Zehetner. “We will also retain full flexibility with regard to the future use of these shares and benefit from planned dividend payments by Buwog up to any exchange date.
The favourable terms achieved on the issue will substantially reduce our financing costs after we – as planned – have repaid more expensive financings.” Immofinanz has a 49 percent stake in Buwog.
