2013-08-26 18:01:10 - Next two issuances soon to follow.
Langen, 1 August 2013 – K-Bonds Finance GmbH, henceforth operating as K-Bonds AG in Frankfurt, Germany, continues its success after issuing mortgage secured loan K-Bond 1 in 2012 and K-Bond 2 in May 2013 with its latest issuance.
K-Bonds Finance GmbH which business will be operated in the future by K-Bonds AG headquartered in Frankfurt, continues its successful issuances of mortgage secured loan notes with its latest issuance of the K-Bond 3 after having placed its K-Bond 1 in 2012 and K-Bond 2 in May 2013. The loan note with a total volume of 52 million Euros is divided into two tranches: a senior tranche of 45 million Euros with a 4 % yield and a subordinated tranche of 7 million
Euros and a 6 % yield. The senior tranche will be repaid in full after its term of ten years. the junior tranche is amortised in full pro rata over seven years.
With the German Baader Bank AG as the paying agent, the new
loan note’s borrowers are the property owning companies which form part of the Sirius Real Estate group (“SRE”, please visit http://www.sirius-real-estate.com) that is listed on the London Alternative Investment Market (AIM). SRE operates a total of 37 business parks in Germany, 34 of which belong to Sirius’ property owning subsidiaries while the remaining are managed for third parties. The company’s Berlin based asset management, Sirus Facilities GmbH, also offers third parties to operate the business parks.
The loan’s underlying real estate portfolio was valued at 81.9 million Euros by an independent evaluator (Winters & Hirsch). The overall lending ratio does not exceed 63 % of the current market value. Adding to its positive outlook the net incomes of 6.8 million Euros provide a debt coverage ratio of 230 %. As a result the European rating agency Euler Hermes Deutschland GmbH rated the K-Bond 3’s senior tranche with an Investment Grade A–. To read the complete rating report, please visit the rating agency’s homepage: http://www.ehrg.de/euler-hermes-rating-bewertet-die-k-bond-v-gmbh-mit-a-rating-bei-stabilem-outlook/
The loan’s successful placement paves the way for at least two or three upcoming issuances that will be founded on another highly diversified SRE portfolios. Alongside a residential portfolio a fully leased office property in the centre of one of the largest cities in West Germany is currently under consideration. As Dr Hans-Günther Nordhues, CFO of K-Bonds Finance GmbH and CEO of K-Bonds AG, explains the standard set by K-Bond loan notes has established among institutional investors: “With the highest standards of security along with excellent rating results and well-documented evaluations investors can rest assured to be investing in a stable product that is not subject to any volatilities.”
So far, this year proves promising for K-Bonds AG to attain the Top 20 loan note issuants by easily placing over 100 million Euros during the second half of 2013.