High Demand for New Hanza Capital Bonds

Riga, Latvia, October 16, 2017, 09:52 / Investments

Initial placement of the first bonds of New Hanza Capital, a company investing in real estate, has been completed successfully. During the subscription, there were bond purchase applications received of almost double amount as the amount of issue, therefore applications of some investors were satisfied partially.

The size of the bond issue is EUR 10 million, and they have been purchased by 80 investors. The annual interest rate is fixed at 4.9% with coupon payment twice a year. Initial placement price: 100% of the face value. The issue date is 16 October 2017, and the maturity date is 16 October 2022. The issuer may exercise the call option prematurely. In October, the bonds are supposed to be admitted to Nasdaq Riga regulated market – the Baltic Bond List of Nasdaq Riga.

“We are grateful to our investors for their interest and trust in us. We will use the attracted funds for executing our investment plan including investments in modernisation of office buildings located at former VEF plant’s territory. The buildings were purchased in September after proper assessment of the prospects of the location. Here, we plan to create a modern business environment at the same time preserving the architecture values and atmosphere of the past. We hope to attract advanced technology companies to fill that neighbourhood with contemporary yet historically harmonised content. Our estimates suggest that the reconstructed buildings would be able to house at least 2500 workplaces,” notes the CEO of New Hanza Capital, AS Andris Kovaļčuks.

In New Hanza Capital bond issue, ABLV Bank has been the arranger of the issue ensuring the necessary documents for the issue, as well as performing the initial placement of the bonds.

“We are pleased to see that in three weeks of bonds placement we managed to attract such a great number of investors, who in total applied for a much bigger amount of bonds than it was offered. The results of this issue prove it once again — that we are ready to share our solid bond issue experience with our clients helping to attract the necessary financial assets for business development,” says Māris Kannenieks, Member of the Board of ABLV Bank.

This is the third bond issue where ABLV Bank takes part as an arranger and consultant. Taking into account the accumulated experience in issuing own debt securities, in 2016, ABLV Bank added arrangement of bond issues for its clients to the range of ABLV Bank products. Until today, ABLV Bank has independently performed 43 public bond issues of total amount exceeding EUR 1.4 billion.

New Hanza Capital, AS is a company founded in 2006. The objectives of its operation includes investing own and third party funds in commercial real estate objects to achieve sustainable increase in income from renting the premises, long-term capital growth and enlarging of the value of properties. The biggest shareholder of New Hanza Capital, AS is ABLV Bank AS, owning 88% of the company’s shares. The company’s real estate portfolio includes VEF office buildings, airBaltic central office at Riga International Airport, logistics centre in Ķekava Region and other objects.