UBM successfully issues EUR 100 million hybrid bond

(Vienna, 22-02-2018) UBM Development AG, a leading hotel developer in Europe, has successfully completed the issue of a deeply subordinated bond (hybrid bond) within a few hours amid a very positive response from investors.

The issue amount of a total of EUR 100 million was taken up – apart from Austrian investors – largely by a broad international investor base in Germany, Luxembourg and France. With a denomination of EUR 100,000, the issue was directed exclusively to institutional investors. This transaction enabled UBM to significantly broaden its investor base. The perpetual bond has an early redemption option of the issuer after five years. As a result of the strong demand from investors, the coupon was set at 5.50%. Once it is admitted to trading on the Vienna Stock Exchange, the hybrid bond will be listed in the Official Market.

The issue proceeds will be used to finance future projects and investments, to strengthen the balance sheet structure, or also to potentially refinance existing financing of UBM Development AG.

“The keen interest from international investors is further proof that UBM is playing in a different league. The issue is both an all-out success for us from a funding perspective, and a strong vote of confidence in our strategy,” says Patric Thate, CFO of UBM Development AG.

UBM Development is a leading hotel developer in Europe. Its strategic focus is on the three clearly defined asset classes Hotel, Office and Residential, in the three core markets Germany, Austria and Poland. With 145 years of experience, UBM concentrates on its core competence, the development of real estate. The Group acts as a one-stop provider for everything from planning all the way to the marketing of the property. UBM shares are listed in the Prime Market segment of the Vienna Stock Exchange.

For inquiries, please contact:
Thomas G. Winkler
UBM Development AG
Tel.: +43 (0)50 626-1471
E-mail: public.relations@ubm.at

Legal notice/Disclaimer:
This announcement does not constitute or form part of any prospectus or offering document or solicitation or invitation of any offer to exchange for or to buy any securities; neither does it constitute a financial analysis or advice or recommendation regarding any financial instruments. 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.