Arco Vara AS issued bonds in the amount of 1 120 000 euros. The issue date of the bonds was 7th January 2016 and the maturity date is 6th January 2018. Total 112 bonds were issued, nominal value of 10 000 euros each, with interest rate 12% per year. The issued bonds are not guaranteed. The issued bonds have been paid for in the full amount. The bond issue was conducted in accordance with § 12 section 2 clause 2 of the Securities Market Act, therefore the offer of securities was not a public offer.
The planned aggregate amount of the issue was 1 million euros. The minimum amount for subscription was 10 000 euros. Bonds were subscribed by 10 investors. The issue was oversubscribed. The Management Board of Arco Vara AS decided to accept all subscriptions and increased the aggregate amount of the bond issue to 1 120 000 euros.
According to NASDAQ OMX Tallinn Rules and Regulations, subscription by one particular investor AS Lõhmus Holdings is deemed to be a transaction with a person connected with the issuer. The member of the Management Board of AS Lõhmus Holdings Mr. Rain Lõhmus is also the member of the Supervisory Board of Arco Vara AS.
Proceeds of the bond issue will be used for real estate development in Estonia.
Evelin Kanter
Head of Legal Department
Arco Vara AS
Tel: +372 614 4594
evelin.kanter@arcovara.ee