Arco Vara plans a private bond issue

Arco Vara announced to the stock exchange its intention to issue up to four million euros worth of bonds at a 10% interest rate in December. The real estate developer plans to use the funds to expand its operations and finance upcoming investments.

The bond issue, starting on December 13, is part of Arco Vara’s longstanding tradition of offering investors attractive returns. The nominal value of the two-year bonds is 10,000 euros, with quarterly interest payments, and the maximum issue volume of 400 bonds.

According to Kristina Mustonen, the CEO of Arco Vara, the bond offer continues the company’s strategy to provide investors with a stable and profitable investment opportunity. “For years, Arco Vara has issued two-year bonds with a competitive interest rate. The maturity date for previous bonds is December 13 this year, and we intend to maintain our bond tradition. Arco Vara bonds have proven to be a stable, secure, and profitable investment tool for professional investors,” said Mustonen.

Funds from this issuance will be used as equity financing for Arcojärve development project. This development focuses on an environmentally friendly and community-centered lifestyle, creating a new, integrated, and modern living environment along the shore of Lake Harku for residents and visitors of the Haabersti district. The project includes the demolition of old buildings, construction of walking paths and recreational areas, and improvements to beach accessibility. According to Mustonen, the goal of the development project is to preserve and enhance the area’s natural beauty while offering modern conveniences for residents and visitors.

Tiina Malm, CFO of Arco Vara, confirmed that the bonds will be offered as a private placement in compliance with European Union regulations (EU 2017/1129 Article 1). “Those interested in subscribing can inform our finance department via email, and the bonds will be offered on a first-come, first-served basis,” she explained. The maturity date for Arco Vara’s unsecured bonds is December 12, 2026. “These are unsecured bonds, meaning the company’s entire balance sheet serves as collateral,” added the CFO.

On November 14, Arco Vara will host an investment event “Tark raha 11/24” at 5:30 PM in F-hoone Black box (Telliskivi Quarter). At the event, Arco Vara will introduce the terms of the planned bonds, discuss real estate market trends with LHV macroanalyst Triinu Tapver, and examine the role of bonds in a small investor’s portfolio.