SBA Urban is launching a EUR 4.5 million bond issue to finance the development of the Hermanas business centre in Kaunas, with an annual yield of 7.5% and a redemption date set for November 2027.
SBA Urban has recently announced a EUR 4.5 million bond issue aimed at funding the development of the Hermanas business centre located in Kaunas, Lithuania. This bond program's third tranche will be available for public distribution to both private and institutional investors from February 9 to 20. The bonds are priced at EUR 1,027.19 each, offering an attractive annual yield of 7.5%, with payment of interest occurring every six months. The redemption of these bonds is slated for November 29, 2027, providing investors a relatively short-term investment avenue.
Kasparas Juลกka, the Director of Investment at SBA Urban, has mentioned that they are on track to complete the construction of the business centre by February, noting a rising interest from potential tenants. Currently, approximately one-third of the total space has already been secured through signed contracts and reservations, indicating a healthy demand for the new business facility. The successful uptake of these bonds is also viewed as a positive indicator for the ongoing real estate development in the Kaunas region.
Luminor Bank is facilitating the distribution of the bonds, while the law firm Ellex provides legal counsel for the offering. Investors interested in purchasing these bonds can do so through their securities accounts with any major bank operating in Lithuania or through other investment service providers. Additionally, the bonds will be listed on the Nasdaq, allowing for increased visibility and accessibility for potential buyers, further enhancing the appeal of this investment opportunity.
