Sponda - Other information disclosed according to the rules of the Exchange

Sponda guides debt investors on the future restructuring of the financing and the security required by the already taken and future refinancing activities and the impact on the balance sheet structure

Sponda          Plc                                       Stock         Exchange
Release                       December 8, 2017 at 15:40


Sponda  guides debt investors  on the future  restructuring of the financing and
the security required by the already taken and future refinancing activities and
the impact on the balance sheet structure

On October 28, 2017, Sponda Plc ("Sponda") announced that Sponda group companies
have  signed secured facilities agreements for approximately EUR 1.6 billion. In
addition  to  the  already  signed  facilities  agreements,  group companies are
contemplating  signing a new secured  facilities agreement for approximately EUR
0.6 billion  in  the  near  future.  The  new  facilities  are  to  be  used for
refinancing  existing indebtedness  of group  companies and  for certain general
corporate purposes, including possible distributions of funds.

Taking  into account the  already signed facilities  agreements of approximately
EUR  1.6 billion and the contemplated  facilities agreement of approximately EUR
0.6 billion,  Sponda  group  companies  will  be  party to facilities agreements
amounting to approximately EUR 2.2 billion in total. The above-mentioned already
signed  and contemplated secured facilities agreements will be entered into with
financial  institutions and Sponda and certain  group companies will pledge real
property and other assets with a total aggregate value of approximately EUR 3.3
billion as well as certain receivables as security for such loans. Real property
and  other assets with a value of approximately EUR 0.6 billion fall outside the
scope  of  the  already  signed  and  contemplated secured facilities agreements
discussed herein but might be subject to pledge arrangements in potential future
financing activities.

In  addition  to  the  above-mentioned  already  signed and contemplated secured
facilities  agreements,  Sponda  and  certain  other  group  companies intend to
continue  to  undertake  further  measures  to  restructure the financing of the
group.  The intention  is to,  among other  things, arrange  additional secured,
interest-bearing  financing from other sources in an amount of approximately EUR
0.4 billion,  using the above-mentioned assets  of approximately EUR 3.3 billion
as  well  as  certain  receivables  to  provide  second  priority  security. The
additional  financing are  to be  used for,  among other things, certain general
corporate  purposes,  including  possible  distributions  of funds. In addition,
Sponda  has, on December 5, 2017 redeemed its  hybrid bond the redemption notice
of which was published by Sponda on November 2, 2017.

The  value  of  the  security  assets  granted  by  Sponda  and  certain  of its
subsidiaries  as security for the above-mentioned financing arrangements exceeds
the  threshold of 20 percent of Sponda's  total consolidated assets mentioned in
the terms and conditions of Sponda's EUR 150 million notes due 2018 and EUR 175
million  notes due 2020. Accordingly, Sponda  previously notified the holders of
the  notes of the possibility to demand  prepayment in accordance with the terms
and  conditions of  the notes.  As notified  earlier, any demands for prepayment
must  be delivered to Sponda  directly or through the  relevant arrangers of the
notes no later than on December 22, 2017.

The  above-mentioned financing arrangements will have  an impact on Sponda's key
balance sheet ratios and existing target equity ratio guidance. Depending on the
final amount of the interest-bearing loans of the group and the final purpose of
the  facilities, the equity  ratio may be  approximately 30 percent or below and
the Loan-to-Value ratio will likely be above the level of 65 percent.

Sponda Plc

Board of Directors

Further information: Niklas Nylander, CFO, tel. +358 40 754 5961

Sponda in brief:
Sponda is a property investment company specializing in commercial properties in
the  largest cities in Finland.  Sponda's business concept is  to own, lease and
develop retail and office properties and shopping centers into environments that
promote  the business success of its clients. As at September 30, 2017, the fair
value  of Sponda's investment  properties was approximately  EUR 3.9 billion and
the leasable area was approximately 1.2 million square meters.


[]