BRANICKS Group AG has announced that the holders of its corporate bond, a Green Bond with a volume of EUR 400,000,000 and an interest rate of 2.250% maturing in 2026, have approved an extension of its maturity. This decision was made during a vote without a meeting. The minimum participation of 50 per cent of the outstanding nominal amount of the bond required for this was not reached, necessitating a second vote.
For the second vote, a minimum participation of 25 per cent of the outstanding nominal amount was required. This hurdle was successfully overcome. The majority of the voting bondholders cast their votes in favour of the proposed amendments to the bond terms. Accordingly, the creditors approved a 24-month extension of the bond’s maturity and an increase in the interest rate.
Details of the Bond Terms
The adjustments stipulate that the bond's maturity will be extended until 26 June 2028. The original maturity was set for 26 June 2026. Creditors will also benefit from an increase in the coupon. From 26 June 2024, the interest rate will be raised from 2.250 per cent to 8.500 per cent. Additionally, a partial redemption of the bond has been decided, to occur in two tranches. A first partial repayment of 15 per cent of the original nominal amount, equivalent to EUR 60 million, is planned for 30 June 2025. A second partial repayment of 10 per cent, or EUR 40 million, is scheduled for 30 June 2026.
These measures serve to strengthen the company’s financial stability. The adjustments enable BRANICKS Group AG more flexible liquidity planning and help navigate current market conditions. The bondholders' approval underscores confidence in the company's long-term strategy and the attractiveness of the adjusted terms. The holding of a second vote is a common procedure when the quorums of the first vote are not met, and it ensures decision-making even with lower participation.
The new bond terms come into immediate effect and are binding for all holders of the corporate bond. BRANICKS Group AG plans to further optimise its real estate portfolio and focus on ESG criteria, which is supported by the successful restructuring of the bond. This ensures sustainable development of the portfolio in line with corporate objectives and investor expectations.
