RONSON Development raises PLN 100 million from an issue of bonds
RONSON Development, one of the leading and significant real estate developers in Poland, issued 100,000 series W bonds with a nominal value and issue price of PLN 1,000 per bond and an aggregate nominal value and issue price of PLN 100,000,000.
We are happy to announce another successful bonds issue on very good conditions. The feedback after the roadshow was very positive. The investors appreciate our high market position, strong balance sheet and very good financial results. The demand for our W-series bonds exceeded our current needs and reached PLN 125 million. With this issuing we have secured our midterm financial needs, what allows us to repurchase and redeem bond series maturing this year and secures our further development plans– comments Yaron Shama, RONSON Development’s Vice-President and CFO.
For the second time in RONSON’s history we raised 100 PLN million from a single issue of bonds. This proves, that investors see RONSON as an attractive and credible issuer in a competitive market and as a significant developer. With this issuance we have secured financing for development of new projects and what is even more important in this case – for further expansion of our land bank. It is now very important to have adequate cash at our disposal to be able to react quickly to market opportunities – says Boaz Haim, CEO of RONSON Development.
The bonds are unsecured and bear an interest at a variable rate based on the WIBOR 6M, increased by a margin of 4% (interest is payable semi-annually). They will be redeemed through the payment of an amount equal to the nominal value of each bond in 2 instalments: the first on 15 October 2024, by redeeming 40% of the nominal value of the originally issued bonds and the second on 15 April 2025 by redeeming the remaining part of the nominal value.
At the same time RONSON:
- purchased for redemption series R bonds with a nominal value of PLN 10,000,000 from the bondholders who purchased series W for at least the same amount. In addition the Company paid interest accrued on those bonds until the date of the transaction and
- purchased for redemption series U bonds with a nominal value of PLN 2,247,400 from the bondholders who purchased series W bonds for at least the same amount. These transactions were settled without cash (by set-off), except for accrued interest on those bonds until the date of the transaction, which were paid by the Company.
RONSON has been an active, credible issuer of corporate bonds since 2011. Most of the bonds issued by RONSON are listed on the Catalyst trading platform.
Michael / Ström Brokerage House acted as an offering entity in the placement process of W-series bonds.