Globalworth Real Estate Investment Limited, the real estate investment firm controlled by Ioannis Papalekas (photo), has raised EUR 550 million from a record bond sale. The fund will launch the bonds on the Irish Stock Exchange.
The five-year euro-denominated bond matures on 20 June 2022 and carries a fixed interest rate of 2.875 per cent payable annually beginning on 20 June 2018, according to a company statement.
The fund has invested massively in the Romanian office segment, alongside smaller projects in the industrial segment. Its portfolio in the country could reach EUR 1 billion in value this year, according to market estimates.
The net proceeds from the offering will be used to repay certain of the company’s indebtedness and for general corporate purposes.
Deutsche Bank AG, J.P. Morgan Securities plc and UBS Limited acted as joint bookrunners, while BT Capital Partners S.A. and Rand Merchant Bank, a division of FirstRand Bank Limited (London Branch) acted as co-managers.
Dimitris Raptis, Deputy CEO and Chief Investment Officer, commented: “We are delighted by the strong interest shown from international investors in our inaugural Eurobond transaction and a landmark bond issue for a real estate investment company active in the broader CEE region. With this transaction we are greatly simplifying our debt capital structure, significantly reducing our average cost of debt and further increasing our war chest for the next phase of our growth in Romania and the broader CEE region, predominantly in Poland.”