The interest rate on J and J2-series bonds is established based on the WIBOR 6M rate increased by a 3.4% margin and the bonds have 4,5-year maturity. The sale starts on 18th February and is scheduled to 1st March, 2019. The transaction is performed by Dom Maklerski PKO BP and a consortium of Noble Securities S.A., Michael / Ström Dom Maklerski S.A. and Dom Maklerski Banku Ochrony Środowiska S.A.
The funds obtained from the bond issue is planned to be used by Echo Investment to finance its business development. The Company has currently over 1.1 mln sqm of office, residential as well as retail and entertainment space under construction and in preparation.
„Echo Investment has secured its pipeline for the next 4-5 years with a great number of fantastic development projects. With successful multifunctional Warsaw Brewery complex being currently under construction we see great opportunities for another ‘destination’ projects such as Tymienieckiego in Łódź, that was already launched. As the market fundamentals are favourable for residential sector, this year we launch construction of c.a. 1,500 units for sale with our goal to keep high margins. Our land acquisition department has focused on securing plots for another residential projects to lead Echo Investment to become the market leader. To complement residential sector we also develop Resi4Rent – the first in Poland institutional platform of rental apartments, which provides us the opportunity to fill up the market niche and be a market leader also in this segment. In 3-5 years, it will operate 5-7 thousand apartments” says Nicklas Lindberg, CEO of Echo Investment.
Echo Investment has been issuing bonds for individual investors since 2014. So far, PLN 600 mln securities for individual investors have been issued, of which PLN 400 mln is still traded on the stock exchange, and the other PLN 200 mln have been properly redeemed. The Company has also an impressive track-record of cooperation with financial institutions which as of now hold Echo’s bonds of PLN 716 mln nominal value. In April 2018, the Financial Supervision Authority approved the prospectus of bonds for individual investors, on the basis of which Echo Investment placed bonds worth PLN 100 mln in May and October 2018.
”In Q1-Q3 2018 Echo Investment group generated a net profit of PLN 158 mln. We constantly cooperate with the largest banks and financial institutions, and our debt to the value of assets ratio as at 30 September 2018 amounts to 23%. It is a good starting point for future development and further strengthening of the Group” says Maciej Drozd, Vice-president of Echo Investment responsible for finance.
