On 21 August 2013, in order to restart Manastirski Livadi development project, Arco Vara AS issued bonds in the amount of 750.000 euros as targeted issue. The maturity date of the bonds was on 21 August 2016 and the annual interest rate was 14%.
As the sell out of Manastirski Livadi development project took place considerably earlier than planned, Arco Vara AS made an offer to the bond owners to sell back the bonds before due date. The offer was accepted by all bond owners. The repurchase of the bonds was completed on 20 February 2015. By redeeming the bonds before maturity date the company saves over 150.000 euros of interest cost.
Manager’s comment: “While issuing the bonds in 2013 summer, the objective was to restart the development process in Sofia. At that time Sofia’s real estate market had not awakened yet and Arco Vara’s developments and economic situation were in low point. The interest rate and maturity date of the issued bonds reflect the calculations made during that time. Bonds were sold back to the company by all bond owners, among them Gamma Holding OÜ, i.e. company owned by Mr. Arvo Nõges. Last summer the management was not convinced if the aforementioned person’s behaviour was in accordance with the best interests of the company. Now it can be recognized that the doubts were unfounded and shareholders are operating unanimously".
Evelin Kanter
Head of Legal Department
Arco Vara AS
Tel: +372 614 4594
evelin.kanter@arcovara.ee
http://www.arcorealestate.com