Cordia issued a EUR 105 million 10-year bond at 2.46 percent yield to finance its expansion strategy

Aurel Constantin 01/09/2020 | 15:26

Cordia International, the residential development platform of Futureal Group has successfully managed its second bond issuance on the Budapest Stock Exchange to finance its further expansion, predominantly in CEE. Hungary’s market leading residential developer raised HUF 36 billion (EUR ~105 million) in its latest transaction which was heavily oversubscribed by financial institutions and achieved a 2.46 percent yield. Last November Cordia successfully placed a HUF 44bn (EUR ~135 million) 7-year bond at 3.82 percent yield.

“After the completion of our company’s first bond issue last November, Cordia participated again in the bond program initiated by the National Bank of Hungary. Our second bond issuance with 10-year instruments closed with an outstanding success, that is well indicated by the fact that investor interest in the bonds was stronger than before and we achieved 2.4 percent average yield. We have been preparing for a long time to become a company ready for the capital markets and we’ve reached the next major milestone of this”, said Gábor Futó, founder and majority shareholder of Cordia.

“The 36 billion HUF (EUR 105 m) collected from the transaction serves again as fresh funds for our future expansion, we will use it to further strengthen our market presence. It will enable us to invest into projects and companies in our core markets where we are already present, but we are also searching for additional opportunities. Due to our diversification we have much broader and better perspective,” said Tibor Földi, Chairman of the Board of Cordia.

Using the funds collected from the bond issuance November 2019, Cordia purchased the site of the former Modena garment factory in Poznan, Poland, where the company is planning an urban regeneration project, and it also has similar plans on a plot in Warsaw. Cordia also acquired nearly 93 percent of the shares of the Warsaw-listed real estate development company Polnord S.A. and 20 percent of ARGO Properties NV, which is active in the German rental housing market. The company has also bought a coastal development in Spain and a giant plot along the Danube bank in Budapest.

Cordia is one of the largest residential real estate development and investment corporate group in the Central and Eastern European region with a strong and well-known brand and presence in the mid- and mid-to-high segments of the for-sale market in Hungary, in Poland, Romania, while also undertaking a pilot project in Spain. Cordia Group has a 20 years track record and is proud bearer of multiple international awards, including: “ULI Global Awards for Excellence” from ULI, “Best Mixed Use Project in Europe” International Property Awards, Bloomberg TV, The New York Times, “Best Purpose Built Project Worldwide” by International Real Estate Federation (FIABCI)”

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