Sponda - Company Announcement

Sponda issues EUR 130 million hybrid bond

Sponda Plc	Stock Exchange Release 17 June 2008, at 1:20 pm                    




Sponda issues EUR 130 million hybrid bond                                       


Sponda has issued a EUR 130 million hybrid bond to Finnish institutional        
investors, with a coupon rate of 8.750 %. The bond has no maturity, but Sponda  
is entitled to call the bond in five years time. The bond will, in its entirety,
be treated as equity in Sponda's IFRS financial statements. The issue does not  
dilute the holdings of the company's current shareholders. The company will     
apply for public listing of the bond by the end of September 2008. The lead     
manager of the bond issue was Nordea Markets.                                   

Sponda has announced that the company's long-term target is an equity ratio of  
33 % and that it would strengthen its solidity during 2008. The hybrid bond     
improves the company's equity ratio.                                            

With this issue, and with the other financial arrangements agreed earlier this  
year, Sponda is ensuring that it has the required financing for its planned     
investments in 2008.                                                            

In addition to the hybrid bond, Sponda is preparing sales of individual         
properties in the near future.                                                  


Sponda Plc                                                                      


Further information:                           
Kari Inkinen, President & CEO, tel. +358 400-402 653 ja                         
Robert Öhman, CFO, tel. +358 40-540 0741                                        



The hybrid is an equity bond that is subordinated to the company's other debt   
instruments. However, it is senior to other equity instruments. An issuer of a  
hybrid loan has the right at their discretion to defer one or more interest     
payments. Hybrid bond holders have no control over the company's policies and no
right to vote at shareholders' meetings.                                        


Sponda Plc is a real estate company specializing in commercial properties in the
largest cities in Finland and in Russia. Sponda's business concept is to own,   
lease and develop office, retail and logistics properties into environments that
promote the business success of its clients. The fair value of Sponda's         
investment properties is approximately EUR 2.7 billion euros and the leasable   
area is around 1.4 million m².