The bonds, with a nominal value of EUR 1,000, carry a three-year maturity and an annual coupon of 8.5% paid semi-annually. They will be publicly offered to private and institutional investors across the Baltics from 8–19 September 2025. Proceeds from the first tranche will refinance the bonds issued in 2023, while subsequent tranches will be aligned with the financing needs of further portfolio development.
Attractive risk-return profile
„Bond yields have recently stabilised at attractive levels for investors. This issue stands out as it is backed by successfully operating Urban HUB properties in Vilnius and Kaunas, supported by reputable and institutional shareholders,“ said Kasparas Juška, Head of Investments at SBA Urban.
„With strong demand in the local bond market, investors must carefully assess risk and return. This issue from a well-known developer is backed by income-generating assets in an attractive segment and location, with clear tenant demand. The proposed return is in line with market levels and reflects investor expectations,“ said Gediminas Norkūnas, Head of Securities Issuance at Luminor Bank.
The bonds are expected to be listed on Nasdaq Baltic First North within one month of the first tranche. The issue is organised by Luminor Bank, with Ellex Valiunas as legal advisor.
The first Urban HUB bond issue in 2023 raised EUR 8 million from more than 100 investors, with approximately EUR 1.5 million in interest already paid.
One of the largest portfolios of its kind in the Baltics
Urban HUB business and retail campuses in Vilnius and Kaunas form one of the largest portfolios of their kind in the Baltics, with a total potential of 87,900 sqm. Of this, 49,600 sqm were completed in 2024, with over 70% leased to more than 60 tenants, including VIA Lietuva, IKI Lietuva, Pepco, Gym+, Paulini, and Lonas. By year-end 2024, the portfolio was valued at EUR 90 million.
Further phases of Urban HUB Kaunas are planned to add another 38,300 sqm of leasable space. The projects are being developed with equity partners EBRD and TABA Invest, with credit financing from Artea Bank and Bigbank.