Cordia, a developer company belonging to the international Futureal group, raised the equivalent of PLN 575m from the first bond issue in its history. The new funds will be used for further expansion of the group, among others, in Poland, the company said.
PLN 575m from the issue
Cordia has issued bonds under a programme operated by the National Bank of Hungary which aims to promote alternative forms of financing among Hungarian companies. In this way, the company managed to raise HUF 44.4 bn, i.e. approximately PLN 575m.
The issue was very popular, which translated into a significant oversubscription and an average return on issued securities of 3.82%. The bonds have a fixed coupon of 4% per annum and their final redemption date falls in 7 years with depreciation starting in the fifth year,” said Tomasz Lapinski, Member of the Management Board of Cordia International and Cordia Group Finance Director.
New locations in Poland
The company’s operations are diversified in three main markets: Hungary, Poland and Romania. The company has also recently invested in its first project in Spain. Cordia’s portfolio of secured land plots and projects includes more than 4,100 residential units under construction and sale, as well as a land bank for more than 5,200 units. The just completed bond issue will provide funds for much larger investments in further projects in markets where the company is already present (mainly in Poland) but also for searching for other development opportunities.
On the Polish market, Cordia has just launched a new Horyzont Praga project in Warsaw, and its nearest plans include debut projects in Gdansk and Sopot and continuing operations in Krakow and the capital city. The market entry opportunities in Poznan and Wroclaw are also being analysed.