EIKA Group is launching a EUR 5 million bond issuance program for a new housing project in Vilnius’ Pilaitė neighborhood. In the first stage, which will take place on November 12-14, a EUR 3 million bond issue will be issued on the bond distribution platform BeMyBond, with a duration of 2 years and 6 months and an annual interest rate of 6.5 percent.
The funds raised will be used to develop the first phase of the new A++ energy class residential project in Pilaitė, managed by EIKA Development. At this stage, 153 property units are planned to be built in a strategically convenient location in the microdistrict, and in total, over 230 property units are planned in the new quarter over two development phases.
“We have been building housing in Pilaitė since 2007, so we know this area and its potential very well. The bond issue provides us with a flexible source of financing for faster project implementation, and for investors – an opportunity to contribute to a reliable developer and sustainable development of the city,” says Tomas Žiaugra, Director of the Development Department at EIKA Development.
The upcoming block on Juodkrantės Street, the construction and sales of which are planned to begin in the third quarter of 2026, will become the company’s fourth project in Pilaitė. The company has already built residential buildings in the microdistrict on M. Mažvydo Street, implemented the project “EIKA namai Pilaitė” on Karaliaučius and Tvankstos Streets, and the “Saulės namai” block on Pilkalnio Street.
“Pilaitė, which grows by approximately 1,000 residents every year, has been among the top three most popular neighborhoods in the capital for 15 consecutive years, and in the second half of 2024 it was the first choice of settlers. Last year, a total of 310 apartments were sold in the district, and this year this number will increase even more, as 308 apartments have already been sold in the first 10 months of this year,” says T. Žiaugra.
“We have no doubt that the new project will attract significant investor attention not only because of the reputation of EIKA Group, but also because the bonds will be secured by a mortgage of land plots and a guarantee from the fund that manages the Pilaitė project. In addition, the real estate project itself has good prospects, and the risk-return ratio is attractive,” says Indrė Dargytė, co-founder and head of the BeMyBond platform.
The first stage of the bond issue distribution will take place on November 12-14 on the bond platform “BeMyBond”, where all registered individuals and legal entities will be able to invest in the future housing project in the Pilaitė microdistrict.
The bonds will be distributed on a first-come, first-served basis, until the target of EUR 3 million is reached. The minimum investment amount will be EUR 1,000. The bonds will have a maturity of 2.5 years with the option for the issuer to redeem them no earlier than after 9 months. The bond coupon will be paid semi-annually, and the annual interest rate will be 6.5 percent.
The project owner (issuer) – UAB “ERF3 FinCo 2” belongs to the Fund, which develops residential projects. Currently, two projects are being implemented in Visoriai and Pilaitė – preparatory work is being carried out, and the acquisition transaction for plots located in Pilaitė is being completed.
The bonds will be secured by a primary mortgage on the land plots and a fund guarantee. If bank financing is attracted during the project, the primary mortgage on the plots would change to a secondary mortgage.