On 9 December, Endover’s affiliated company Volta SKAI OÜ announces a public offering for investors in the Baltic states of the second series of bonds issued under the €30 million programme approved in September, to raise capital for the construction of a new high-rise building in the Volta quarter in Põhja-Tallinn. For the first time, retail investors will also be able to invest in real estate-backed bonds of an Estonian company.
The bond price is €1049.55, including interest accrued but not yet paid. Investors receive interest quarterly, and the annual yield of the bonds is 8.3%, provided the issuer does not redeem the bonds early and the investor holds them until maturity.
The bonds are secured by a mortgage
As part of the offering, Volta SKAI is raising up to €4 million from retail and institutional investors in Estonia, Latvia, and Lithuania to finance the construction of the first tower of the Volta SKAI high-rise complex. The bonds are secured by a first-ranking mortgage on the same Volta SKAI land plot on Krulli Street in Tallinn, where the two 12-storey towers of the complex are being developed.
Endover’s CEO Roul Tutt noted that among the many real estate-backed bond issues, Volta SKAI bonds stand out for an important reason: “Thus far, we are the only developer in Estonia whose bonds are secured by a mortgage, which creates a significantly safer environment for investors. We hope that involving retail investors will help build a deeper connection with community members who want to contribute to the development of the capital, as the Volta quarter is becoming one of the signature districts near the city centre.”
Admission to trading is planned after the offering
The subscription period runs from 9 to 16 December, the results will be published from 17 December, and the issue date and settlement date is 19 December. The planned first trading day on the Nasdaq Tallinn First North bond list is 22 December. The bond maturity date is set for 1 October 2027, i.e. in almost two years.
According to Silver Kalmus, Head of the Bond Division at LHV Bank, it is a positive development that Baltic retail and professional investors will have the opportunity to participate in financing the development and construction of the first Volta SKAI tower and earn a fixed return on their invested capital: “The Volta quarter has already become one of Tallinn’s most attractive areas, and the first Volta SKAI tower will add a modern and aesthetic landmark.”
The offering is organised by AS LHV Pank, with legal counsel provided by Ellex Raidla Advokaadibüroo, and security agent services provided by Advokaadibüroo Hedman Partners & CO.
