Rotermann City OÜ Bond Issue Oversubscribed 2.84 Times
Rotermann City's 6 million euro public bond offering base amount was oversubscribed 2.84 times. Due to strong demand, the company decided to increase the emission volume to 8 million euros. The offering was participated in by a total of 1379 unique investors from all Baltic countries, who subscribed for bonds totaling 17.06 million euros.
Estonian investors subscribed for bonds worth 15.95 million euros (93.5%), Latvian investors 0.83 million euros (4.9%) and Lithuanian investors 0.28 million euros (1.6%). The average subscription amount was 12,370 euros.
According to Kaarel Loigu, Chairman of the Board of Rotermann City OÜ, the success of the emission shows that investors appreciate both the company's previous work and the vision to create a long-term value-generating urban environment in Tallinn's city center. "The strong oversubscription of the bond emission is a recognition that cannot be measured only in euros. It reflects the trust that has developed over years of cooperation with good clients, partners and the community. In today's market situation, where investors make their choices very carefully, such a result is particularly eloquent. It confirms that our team, previous results and strategy are valued. For us, investors are important partners united by the desire to contribute to the development of one of Tallinn's most prominent urban spaces and its long-term value growth. Such support gives us confidence to continue implementing ambitious projects and encourages us to take responsibility for meeting high expectations," said Loigu.
Silver Kalmus, Head of LHV's Bond Division, congratulated Rotermann City on a successful debut in capital markets. "The oversubscription of the company's first bond emission demonstrates investors' confidence in a high-quality real estate portfolio and the diverse urban environment created over time. Investors' interest was even greater than the final subscription results show, as several institutional investors expressed interest in a larger emission volume. Strong investor interest creates good conditions for Rotermann City to raise larger amounts from capital markets in the future. We thank all investors who participated in the offering," said Kalmus.
As a result of the emission, Rotermann City OÜ will issue 8,000 bonds with a nominal value of 1,000 euros, a fixed annual interest rate of 7.75% and a redemption date of December 12, 2029, resulting in a total emission volume of 8,000,000 euros.
The bonds are expected to be credited to investors' securities accounts on June 12, 2026, and trading on the Nasdaq First North market is expected to begin on June 15, 2026. The first interest payment is expected to be made on September 12, 2026.
Rotermann City plans to use the funds raised from the bonds to diversify the company's capital structure, reducing the obligation owed to the related party U.S. Invest, which results from the purchase of shares in the issuer's subsidiary A3 Arendus OÜ. A3 Arendus OÜ is developing an office building at Ahtri Street 3, which borders the sea on one side and the Rotermann quarter on the other, and is part of the Talsinski quarter.
According to the decision of the Board of Rotermann City OÜ, the bonds were distributed based on the following principles:
All subscription orders submitted by the same subscriber were combined;
Each investor was allocated 33.5% of the aggregate number of subscribed bonds, taking into account the distribution principles described below;
Each investor was allocated at least one bond, provided that the subscription order gave the investor the right to receive bonds in accordance with the distribution principles;
Investors who subscribed for bonds at an aggregate subscription amount of at least 100,000 euros were allocated 60% of the aggregate number of subscribed bonds;
Each investor entitled to receive bonds was allocated a whole number of bonds, rounded to the nearest whole bond.
About Rotermann Quarter
Rotermann Quarter is Tallinn's most unique and valued urban space, where historical industrial heritage is intertwined with contemporary architecture, quality business life and urban living environment. As a junction connecting the Old Town, city center and port area, the quarter has created a place where history and the present meet and where it is good to live, work, dine at restaurants and cafes, and do daily shopping. Rotermann Quarter is part of the real estate portfolio of Golden Line, owned by Urmas Sõõrumaa. Golden Line includes city center developments such as Artius, Talsinski, Rotermann, Golden Gate, La Marina, Grand Avenue, Patarei Sea Fortress and others, which shape Tallinn's city center and port area into a unified, internationally scaled urban space.
