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2008-06-17 12:20:00 CEST 2008-06-17 12:20:39 CEST REGULATED INFORMATION Sponda - Company AnnouncementSponda issues EUR 130 million hybrid bondSponda 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. |
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