Volta SKAI OÜ, an affiliate of Endover, one of Estonia’s most experienced real estate developers, is planning its first retail-targeted bond issuance this year under the €30 million bond program confirmed in September and list Volta SKAI OÜ bonds for trading on Nasdaq Tallinn’s First North alternative market.
The specific terms, volume, and timeline of the bond issuance being prepared in cooperation with LHV Bank will be disclosed in the near future as planned. The bonds, which are targeted at Estonian, Latvian, and Lithuanian retail and institutional investors, are planned to be admitted to trading on Nasdaq Tallinn’s First North bond list. The public offering of bonds is subject to prospectus approval by the Financial Supervision Authority.
The bonds are secured by a first-ranking mortgage on Volta SKAI’s property on Krulli Street in Tallinn, where a high-rise complex with two 12-story towers is being developed. The planned bond issuance is of symbolic importance for Endover, as previously Endover-related companies have not offered bonds to retail investors based on a prospectus. This is also the first time among Estonian real estate developers that bonds secured by a first-ranking mortgage on a property under development are being offered to retail investors.
“Endover’s affiliates have long-standing experience in bond issuance, but previously we have primarily targeted offerings at institutional and larger private investors. Now we want to give retail investors the opportunity to participate in financing projects led by Endover. The planned listing of bonds on Nasdaq First North alternative market will create an opportunity for investors to buy and sell bonds on the secondary market if desired, based on market supply and demand,” said Roul Tutt, CEO of Endover.
Volta SKAI’s first bond series in September this year was oversubscribed 2.2 times, with 112 investors participating in the offering with a minimum investment of €100,000. The entry threshold for the planned public offering would be significantly lower.
In recent years, Endover-related companies have successfully raised over €30 million through bonds, of which €8.8 million has already been repaid to investors. Most recently, Endover redeemed bonds issued for the construction of Volta Gallery Lofts ahead of schedule at the end of November. All previous bond offerings by Endover-related companies have been successful and oversubscribed, while always being secured by first-ranking mortgages. For investors, the risks of projects are therefore clearly limited to the specific development property rather than the capital-raising company.
