The Management Board of Echo Investment has passed a resolution on establishing a bond issue programme worth up to PLN 300 mln or its equivalent in euro.

The company has submitted a prospectus at the Financial Supervision Authority. It is planning to introduce the bonds issued on the regulated Catalyst market. All details concerning the issue, including its schedule, the currency of the issue, the redemption date and the interest rate will be stipulated in the prospectus and in the final conditions of a given series of bonds. “The new strategy of Echo Investment which was adopted in 2016 envisages a fast growth of its scale of operations. Only in 2017 the group is planning to start the construction of minimum 14 projects in the residential sector and the office sector, which will have a combined useable area of app. 140,000 sqm. Echo Investment is in the process of advanced negotiations concerning the purchase of plots for new projects with a useable area of over 500,000 sqm. The negotiations should transform into closed deals over the next few months,” says Nicklas Lindberg, president of Echo Investment. Maciej Drozd, vice-president responsible for finances adds: “The company"s debt level is low.  After Q3 2016 its net debt ratio compared to the value of assets was only 30 pct. It provides us with great comfort in terms of choosing the optimal method of funding our future projects. The public bond issue is an additional tool, which could be used in the process of choosing the sources of funding the group"s development. “We believe that thanks to our stable financial position, clear strategy, the company"s presence on Warsaw Stock Exchange and its good reputation, Echo Investment has good prospects in terms of acquiring funds through a public bond issue. The decision to execute such an issue has not been made yet. When the prospect is approved by the Financial Supervision Authority, the management will make a decision regarding the best source of funding, taking into consideration the Company"s need for capital and conditions on the capital market,” says Maciej Drozd. In 2014 Echo Investment issued public bonds for the first time. The company acquired a total of PLN 200 mln from four series of bonds. The offer enjoyed a lot of interest on the market.