UBM Development AG is considering the issue of a further deeply subordinated bond with an indefinite term, with this new hybrid bond being structured as a sustainability-linked bond. The final volume of the issue has not yet been determined. An issue volume in the (higher) double-digit million range is targeted for, but at maximum EUR 100 million (sub-benchmark size). The issue, which will be directed exclusively to institutional investors, shall be closed still in June 2021. A retail offer will not take place.
The repositioning of financings on “sustainability” is therefore, in view of the UBM Development AG’s board, just a consequence of UBM Development AG’s ESG strategy.
At the same time, UBM Development AG intends to offer the holders of the hybrid bond issued in 2018 to repurchase their bonds.
The invitation to tender Notes for repurchase is subject exclusively to the conditions as set out in the Tender Offer Memorandum dated 7 June 2021 during the offer period which will presumably start on 7 June 2021 and which will end on 14 June 2021, 5.00 pm CET.
The proceeds of the issue are intended (i) to potentially refinance existing financing of the Issuer, in particular, to refinance the existing hybrid bond issued in 2018, and (ii) to realise new and existing projects, especially in the core markets of Germany, Austria, the Czech Republic and Poland.
HSBC Continental Europe was mandated as sole structuring advisor. HSBC Continental Europe and Raiffeisen Bank International AG act as Joint Lead Managers and Joint Bookrunners.
Disclaimer: This announcement is not a prospectus and does not constitute an offer to sell or a solicitation of an offer to buy or subscribe for securities, a financial analysis or any advice or recommendation regarding any financial instruments and is not to be interpreted in such way. In line with foreign securities laws, particularly the US Securities Act of 1933, as amended (“Securities Act”), securities have not been registered and will not be registered with foreign securities authorities and in particular may not be offered or sold in the United States of America (“USA”) without registration or an exemption from the registration requirements of the Securities Act. This announcement may not be disseminated in and/or within the USA, Australia, Canada, Japan or the United Kingdom of Great Britain and Northern Ireland or any other jurisdiction in which the distribution or dissemination may be unlawful and may not be distributed or forwarded to publications that are widely available in the USA. There will be no public offering of securities in the USA. In particular, this document (and the information contained herein) does not constitute or imply any offer of securities for sale or any solicitation of an offer to purchase any securities in the United States, Australia, Canada or Japan or the United Kingdom of Great Britain and Northern Ireland or in any other jurisdiction in which such offer or solicitation is prohibited.
A prospectus will be prepared exclusively for the purpose of listing of the notes of the new hybrid bond on the Official Market (Amtlicher Handel) of the Vienna Stock Exchange. No offer of the notes of the new hybrid bond will be made in Austria or in any other country that is subject to the obligation to publish a prospectus. Following its prospective approval by the Austrian Financial Market Authority (Finanzmarktaufsichtsbehörde), the prospectus will be published in electronic form on the issuer’s website, at www.ubm-development.com, subsite “investor relations.”, subsite “bonds.” (https://www.ubm-development.com/?page_id=8898&preview=true).