The convertible bond placed by IMMOFINANZ on Tuesday got off to a perfect start. On the first two days of interbank trading investors posted an increase of more than two percent. In view of the extraordinarily strong demand (after just four hours the placement was oversubscribed four times and closed early), however, the remarkable increase was not surprising.

IMMOFINANZ’s placement has caused a considerable stir on the international finance markets. With a volume of 750 million Euro, it is by far the biggest convertible bond ever placed by a European real estate company. Even British giants such as British Land, Pearl and Liberty trail far behind with volumes totalling 300 million to 410 million Euro. By global comparison IMMOFINANZ is at the forefront as well: just two placements in the USA have been somewhat bigger than the Austrian market leader’s convertible bond.

“Among institutional investors IMMOFINANZ is considered one of the absolute top companies and the demand is commensurately strong when there is an investment opportunity,” says Chairman Karl Petrikovics. “For this reason virtually all the big players in the European financial world are among the buyers.”

For IMMOFINANZ, which will use the capital raised by the convertible bond for additional real estate investments primarily in CEE and in Germany, the placement is entirely worth it. With just 2.75 percent, interest on the bond is very low. This will significantly reduce the costs for financing. By comparison, the company will save a total of 120 million Euro in credit financing, which will have a significant impact on the profit of IMMOFINANZ.

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