ESPG AG
Diok RealEstate AG: DIOK RealEstate AG Issues 2018/2023 Corporate Bond
Diok RealEstate AG / Key word(s): Issue of Debt
DIOK RealEstate AG (DIOK), a company specialised in office properties in tier two cities in Germany, just issued a corporate bond against the background of the company’s planned future growth. A total issuance volume of EUR 25 million was placed in a first tranche with qualified institutional investors in the Federal Republic of Germany and in certain other selected European countries as part of a purely private placement. The corporate bond has a maturity of five years and bears interest at a coupon of 6.0% p.a., to be paid out annually in arrears to the investors. Moreover, the bond was securitised in a global certificate and is expected to be included in OTC trading on the Frankfurt Stock Exchange (Open Market) with ISIN DE000A2NBY22 on 02 October 2018.
The net issue proceeds will be used to repay existing liabilities and expand the proprietary portfolio in line with the business strategy. The issuance of a tranche of EUR 25 million will permit the company to finance the acquisition of properties from an existing deal pipeline while at the same time preventing excessive net financing costs (cost of carry) and further custodial fees (negative interest). For the further expansion of the proprietary portfolio, the company will periodically review the possible issuance of additional debenture bonds under the 2018/2023 corporate bond up to a total volume of EUR 250 million. Contact:
Information and Explanation of the Issuer to this News: About Diok RealEstate AG Diok RealEstate AG (DIOK) is a property company based in Cologne that specialises in German office real estate. The company’s business focuses on setting up an attractive portfolio of office properties in good to excellent micro-environments of tier two cities. Labour-intensive activities have been outsourced in their entirety to third parties while remaining subject to DIOK’s supervision and control. As an active portfolio and asset manager, DIOK thus achieves a steady capital growth and a positive cash flow from day one. In the medium term, DIOK intends to use its well-filled acquisition pipeline to build up a real estate portfolio worth EUR 1 billion.
28-Sep-2018 CET/CEST The DGAP Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. |
Language: | English |
Company: | Diok RealEstate AG |
Von-Werth-Str. 1 | |
50670 Köln | |
Germany | |
Phone: | +49 (0)22180149800 |
Internet: | www.diok-realestate.de |
ISIN: | DE000A2NBY22 |
WKN: | A2NBY2 |
Listed: | Regulated Unofficial Market in Frankfurt |
End of Announcement | DGAP News Service |