Real estate developer AS Pro Kapital Grupp successfully completed a public bond offering in September, raising a total of EUR 10 million from Baltic investors. The offering was oversubscribed twofold, with 985 investors subscribing for bonds worth almost EUR 12 million, prompting the company to increase the issue from the original EUR 6 million to EUR 10 million.
The bonds carry a fixed annual interest rate of 8.3% and mature in September 2028. Pro Kapital will use the proceeds to fully redeem its bonds traded on the Swedish market ahead of maturity and to terminate their listing on the Nasdaq Stockholm exchange, bringing its financing back to the Baltics, where the focus of its real estate portfolio also lies. The new bonds have been admitted to trading on the Nasdaq Tallinn Baltic Bond List.
According to Edoardo Axel Preatoni, a member of Pro Kapital Group’s management board, the twofold oversubscription confirms investors’ strong confidence in the company’s track record and future plans. Pro Kapital operates in Tallinn, Riga and Vilnius, where several major commercial and residential developments have recently been completed or are nearing completion, including the Kristiine City and Kalaranna Quarter projects in Tallinn and the Klīversala Bay development in Riga.
TEGOS advised and represented AS Pro Kapital Grupp on the bond offering and prospectus procedure, including liaising with the Estonian Financial Supervision and Resolution Authority and the Nasdaq Tallinn stock exchange.
