The Nemunaičiai quarter is being developed by SBA Urban in collaboration with S3 Business, which TABA Invest manages. The total bond issue will be up to EUR 23.5 million, of which EUR 17.3 million has already been placed.
The third tranche of the issue was originally scheduled for 9–20 February, but strong demand allowed the placement to be completed several days earlier.
The bonds are secured by a pledge of the project’s real estate and the issuer’s shares.
Susiję straipsniai
Successful bond programme continues
Andrius Mikalauskas, CEO of Urban LIVE, the company developing Nemunaičiai:
The third consecutive successful bond issue shows that capital markets are active and investors have confidence in the projects we are developing, especially Nemunaičiai in Kaunas, its prospects and the emerging infrastructure. The proceeds from this bond issue will be used for the final construction works and the fitting out of new tenant spaces. We plan to have the building 100% completed by the end of February, when the first tenants will move in.
Investors are being offered an annual interest rate of 8%. During the third tranche of the placement, the bonds were sold at a price equivalent to a 7.5% annual yield. This tranche attracted 133 investors from across the Baltic states. Demand from institutional investors accounted for slightly more than one-third of total demand, with the average investment amount just over EUR 34,000. The bonds are planned to be redeemed by 29 November 2027. The bond offering was organised by Luminor Bank, with legal advice provided by the law firm Ellex Valiunas.
Gediminas Norkūnas, Head of the Securities Origination Department at Luminor Bank:
Investors in real estate development projects in the Baltic states have plenty of options, so we are pleased by the sustained interest in this project. The third tranche included both existing investors in the project and new participants. The increasing total size of the bond issue also attracts more institutional investors, which could mean greater liquidity for this issue.
The Hermanas Business Centre – rising in Nemunaičiai quarter on the left bank of the Nemunas River – is nearly complete, with building finalisation and handover procedures scheduled for February 2026. In total, SBA Urban plans to invest over EUR 35 million in the project.
Hermanas forms part of the 6-hectare Nemunaičiai quarter, in which SBA Urban, together with TABA Invest, intends to invest more than EUR 250 million. The quarter will feature over 600 apartments and more than 30,000 m² of commercial space.