Baltics’ largest office park developer Mainor Ülemiste AS issued a 3.5 year unsecured bond issue with a fixed annual coupon rate of 7% in the form of private placement. The total size of the bond program is 5 million euros with June’s tranche accounting for 2 million euros.
According to Mr. Margus Nõlvak, the CEO of Mainor Ülemiste City, the goal of the bond issue was to finance the next development projects in the fast developing Ülemiste City office park. “For us this is the first bond issue ever. Our objective is to list our bonds on NASDAQ Baltic alternative market First North and attract more private and institutional investors,” said Nõlvak. “This year’s goal is to raise a total of 5 million euros via bond financing, offering investors an opportunity to participate in the development of the largest office park in the Baltics.“ added Nõlvak, who claimed that Mainor Ülemiste is committed to use capital market financing along with bank financing for the future development project as well.
During the private placement offering in June, the bonds were subscribed by Baltic institutional and private investors. The transaction was advised by financial advisor Redgate Capital and Law Firm Raidla Ellex.
“The bond issued was a success in terms of the lowest coupon rate for unsecured and unrated bonds issued after 2008 in Estonia. This demonstrates that local investors have both the confidence and interest to invest in the non-investment grade bond instruments with a strong issuer” said Mr. Aare Tammemäe, member of the board of Redgate Capital who added that the first Mainor Ülemiste bonds were subscribed by many international institutional investors as well.
Ülemiste City is the largest office park based on Smart City concept in the Baltics located nearby Tallinn airport on the former Dvigatel industrial territory. The business campus, spread over 36 hectares, offers today 91 000 m2 of office space for rent with approx. 6 000 employees are working in 300 enterprises in the area. Developers are planning to add 65 000 m2 new office space in the near future. By 2025 300 000 m2 new office space 125 000 m2 of apartments, sports center, cultural center, parks and cafes are planned to add. Ülemiste City is developed by Mainor Ülemiste AS and Tecnopolis Ülemiste AS.
Mainor Ülemiste AS
Chairman of the Board