Rotermann City OÜ Launched Public Bond Offering

Rotermann City OÜ, the owner of Rotermann Quarter located in downtown Tallinn, started a public bond offering today. The offering amount is up to 6 million euros, and in case of oversubscription, the company has the right to increase the offering amount to up to 8 million euros. The bonds have a fixed annual interest rate of 7.75% and a maturity of 3.5 years.

The offering runs from May 26 at 10:00 until June 5 at 15:30. The bonds have a nominal value of 1,000 euros per bond, and interest payments are made quarterly. The results of the offering are expected to be announced on June 9, 2026, bond settlement will take place on June 12, 2026, and the first trading day of the bonds on Nasdaq Balti First North market is expected to be around June 15, 2026.

Capital raising through this emission is a strategic step for Rotermann City OÜ, which allows the company to diversify and strengthen its capital structure. The company continues to see strong potential in developing quality urban space and wants to create long-term value for investors, partners, and the entire urban environment.

Rotermann Quarter is a unique part of Tallinn where historical value and contemporary urban culture meet in the downtown living and working environment. Since 2005, under the leadership of Urmas Sõõrumaa, the area has undergone significant development, transforming into a modern multifunctional quarter where historical architecture and contemporary urban space blend together.

By the end of last year, the rental portfolio size was over 47,500 m², consisting of unique A-class retail, service, and office spaces and 500 parking spaces. In 2025, the company earned 9.3 million euros in sales revenue and the value of real estate investments reached 184.7 million euros at year-end. Rotermann Quarter was visited 10 million times in 2025 and approximately 3,500 people work in the area on a daily basis.

Kaarel Loigu, Chairman of the Management Board of Rotermann City OÜ, said that the purpose of the bond offering is to attract investors to the next development phase of Rotermann Quarter. "The value of Rotermann Quarter has grown significantly over time and the demand for rental spaces is high. This provides a strong foundation for Rotermann's continued success. Through bonds, we are attracting investors to a strong community and thus enabling community members to contribute to the development of the area. From investors' perspective, Rotermann City's strengths are a well-capitalized company, a business model supported by stable rental operations, and a unique position in Tallinn's downtown real estate market," said Loigu.

According to Silver Kalmus, Head of LHV's Bonds Division, bond investors have been waiting for strong and well-known issuers in the Baltic market whose business operations are supported by a quality asset base and stable cash flow. "Rotermann City is a company with a well-capitalized balance sheet, a strong market position, and a clearly distinctive business real estate portfolio in downtown Tallinn. Rotermann Quarter's unique concept, high visitor numbers, and diverse tenant base create favorable conditions for stable cash flow in the future," said Kalmus. Key terms of the offering

• Offering amount: up to 6,000 bonds; in case of oversubscription, the issuer has the right to increase to up to 8,000 bonds (nominal value 1,000 euros per bond).

• Maturity: 3.5 years

• Interest rate: 7.75% per annum, fixed; interest payments quarterly (09/12, 12/12, 03/12, 06/12), first interest payment 09/12/2026

• Offering period: 26.05 at 10:00 until 05.06 at 15:30

• Publication of offering results: 09.06.2026

• Expected bond settlement: 12.06.2026 (or nearby date)

• First expected trading day on Nasdaq Balti First North market: 15.06.2026 (or nearby date)

AS LHV Pank is the organizer of the bond emission of Rotermann City OÜ and Advokaadibüroo Sorainen OÜ is the legal adviser.

The detailed terms of the offering are available at:https://rotermann.ee/investeeri/

Rotermann City OÜ will present the company and the public bond offering at an Estonian-language webinar on May 28.

Estonian-language webinar at 15:00, register here.