Volta SKAI OÜ, Estonian company operating under the brand of local real estate developer Endover, will launch a public bond offering on Wednesday, September 17, to raise capital for the construction of a new high-rise in North Tallinn’s Volta Quarter. While Endover-branded companies have previously arranged several bond issues to finance their projects, Volta SKAI OÜ’s secured issue is the first public offering among them.
During the offering period from September 17 to September 26, Volta SKAI OÜ will issue up to EUR 8 million worth of secured bonds with a nominal value of EUR 1,000 each. The minimum subscription is 100 bonds or EUR 100,000. Bonds can be subscribed through LHV Bank in Estonia. Investors from all Baltic states can participate in the offering.
The bonds carry an annual interest rate of 10%, with interest paid quarterly, and have a maturity period of 2 years. The bonds are secured by a first-rank mortgage on the Volta SKAI property (Krulli 10, Tallinn). Volta SKAI OÜ intends to apply for the bonds to be admitted to trading and list them on Nasdaq Tallinn’s alternative market First North within 6 months of issuance.
Volta SKAI – North Tallinn’s New Landmark
The capital raised through the bonds will be directed toward developing Volta SKAI, a high-rise emerging in North Tallinn’s most popular development area. The project, featuring two 12-story towers, will become the area’s new landmark with modern architecture offering panoramic views of Tallinn Bay and the Old Town. The capital raised from this bond issue will finance the construction of the first tower.
The Volta SKAI buildings – two towers and a parking facility – will comprise a total of 18,600 square meters of gross floor area. This EUR 8 million bond issue represents the first phase of the project’s financing.