IMMOFINANZ, the Austrian real estate company, has announced to issue a convertible bonds with an offering size of 650 million Euro with an additional increase option of a further 100 million Euro. The convertible bonds have a maturity of ten years. Based on the closing share price on November 13 (7.23 Euro), the bond will be subject to an expected coupon rate of 1.25% and issued at 100 percent of par. The bond will be redeemable at 123.2 to 129.7 percent of par at maturity. This results in a minimum yield of 3.25 to 3.75 percent.

The convertible bond will be offered exclusively to institutional investors (outside the USA). Subscription rights of shareholders are excluded. Deutsche Bank, J.P. Morgan and Merill Lynch will function as common bookrunners and lead managers; Constantia Privatbank is acting as co-lead manager.

The convertible bond will be used to further reduce IMMOFINANZ's existing bank debt and makes possible a stark reduction in financing costs. "Our profitability will consequently increase significantly, from which IMMOFINANZ shareholders will profit", says CEO Karl Petrikovics.

IMMOFINANZ is also able to benefit from the current undervaluation of shares compared to the shares' Net Asset Value. "We are extremely confident that the IMMOFINANZ share price will be higher than the conversion price at maturity. As such, the convertible bonds represent an extremely cost-effective form of long-term financing."