This week, EIKA Group redeemed a EUR 1 million bond issue two months ahead of schedule, which was issued for the residential project “Užupios personos”. In May 2024, the BeMyBond bond platform attracted EUR 1 million in investor funds for the development of this prestigious project in Vilnius Užupis at 9 percent annual interest, for an 18-month term.
On September 30, it is planned to start distributing the second bond issue of the prestigious project “Užupio personos” developed by “EIKA Development”. Its value is 1.3 million euros, the annual interest rate will reach 5.75 percent, the duration is 12 months, and it will be possible to invest from 1,000 euros, i.e. the nominal value of one bond. The distribution will last until October 9, or until the entire amount is financed. The distribution will be carried out through the “BeMyBond” bond platform.
“This project is a good example of how capital market instruments help develop prestigious housing in Lithuania. The first issue allowed us to successfully finance the early stage of the project, and now, as the welfare works are nearing completion and the first residents are already moving into their apartments, we are offering investors new, safer conditions. In this way, investors get the opportunity to participate in a reliable project, and we get a flexible source of financing,” says Tomas Žiaugra, Director of the Development Department at EIKA Development.
It is planned that the funds raised during the bond issue will be repaid with the proceeds from the sale of apartments. The bonds will be secured by a secondary mortgage on the project’s real estate at Filaretų g. 25, Vilnius. Artea Bank, which has the primary mortgage on the property, is also participating in the financing of the project.
“After the completion of the main construction works and the acceleration of apartment sales in the “Užupis personų” project, the project risk decreased significantly, and base interest rates in the market decreased over time, so it is natural that the issuer decided to redeem a more expensive bond issue and borrow on new terms. Having eliminated the development risk, we assess this as a safe project, balanced for our rather conservative investor base,” says Indrė Dargytė, head of “BeMyBond”.
The funds raised during the bond issue will be allocated to the prestigious housing project “Užupios personos” in the Užupios district of Vilnius. The main construction works of the project have already been completed, and the building handover procedure is underway. The complex consists of three residential buildings: a five-story building along Filaretų Street and two more private low-rise apartment buildings built in the inner part of the territory. In total, 57 apartments and commercial spaces of exceptional layout are offered to the market, almost 40 percent of which have already been sold. The architectural solutions characteristic of the project are adapted to the hilly landscape of Užupios, and the windows offer a panorama of the roofs of Vilnius’s Old Town and the green spaces of Pavilniai Regional Park.