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Immofinanz Bond with Interest Rate of 5.25 %

Published: June 13, 2012; 13:24 · (Vindobona)

The Austrian real estate group Immofinanz announced that today marks the official start of a road show in connection with the placement of a new corporate bond.

Immofinanz Bond with Interest Rate of 5.25 % / Picture: © Immofinanz

With a denomination of 1,000 euros, this security is particularly attractive for private investors, the company states. The bond will be offered in Austria, Germany and Luxembourg from 18 to 22 June 2012 (early closing possible). The interest rate is expected to equal 5.25%, but the exact rate will be determined as part of the bookbuilding process and announced immediately before the start of the subscription period. The bond has a five-year term. The issuer is targeting an issue volume of at least € 75m. The value date is expected to be 3 July 2012.

Bawag P.S.K. AG, Raiffeisen Bank International AG and UniCredit Bank Austria AG will serve as lead managers for the transaction. Plans call for the use of the proceeds from the partial debenture primarily for the refinancing of the convertible bond 2007- 2017, which carries a put option for bondholders, as well as for general corporate purposes.

“In view of the current low interest rates on savings, we are optimistic that our retail bond will be well received by the market. This bond, which represents an alternative form of investment along with Immofinanz shares, also creates an opportunity to participate in the success of our company at attractive conditions“, commented Eduard Zehetner, Chairman of the Executive Board of Immofinanz Group, on the issue of this corporate bond.