UBM Development AG completed the placement of a corporate bond worth €150 million, representing an increase to the issuance of up to €120 million bonds it planned earlier.
The subscription offer period, scheduled to end Oct. 6, was closed prematurely after more than €200 million in oversubscribed bonds.
The new bond carries a coupon of 3.25% and will mature after five years in 2022. The planned value date is set for Oct. 11.
UBM aims to funnel net proceeds from the new issuance and the exchange of roughly more than €84 million of its five-year 4.875% 2014 bonds with new bonds into new and existing projects. This includes the planned increase in activities in the core markets of Germany, Austria and Poland. The company is also optimistic that the issuance will optimize its financing structure and augment its financial strength.
Raiffeisen Bank International AG and Quirin Privatbank AG were the joint book runners for the issuance.