SBA Furniture Group has announced a new bond issue, aiming to raise EUR 7 million in its first phase scheduled from March 16 to 25, with an issue date set for March 27. The bonds have a face value of EUR 1,000, requiring a minimum investment of EUR 5,000, and will mature two years from the issue date, with interest payments made quarterly to investors. The company has plans to increase the total issue size to EUR 12 million in the future, indicating a potential for growth in investor interest and corporate expansion.

Investors will have the opportunity to choose their desired yield through an interest rate auction, with options set at 6.0%, 6.5%, or 7.0%. The final interest rate will be determined based on demand during the offering period. Those investors who opt for the lowest yield will be prioritized during bond allocation, catering to a more cost-effective approach for the company, which may incentivize investors to choose lower rates to secure their investments.

Additionally, existing bondholders have the chance to exchange their 2024-issued bonds for the new offerings. This exchange option highlights SBA Furniture Group's commitment to current investors while preparing for a redemption date for the existing bonds on March 29, 2024. This strategic move not only consolidates its investor base but also positions the company to capture more capital for its upcoming projects and adjustments in the market.