Arco Vara AS public bond offering announcement

Core Viewpoint - Arco Vara AS is initiating a public offering of unsecured and unsubordinated bonds, with the offering being limited to Estonia and targeting both retail and institutional investors [1][2]. Offering Details - The bond issue is titled "EUR 8.80 ARCO VARA VÕLAKIRI 25-2028" with an issue volume of EUR 10 million, potentially increasing to EUR 15 million [2]. - The bonds have a nominal value of EUR 100 and an interest rate of 8.8% per annum, with interest payments scheduled quarterly [2]. - The subscription period for the bonds runs from 10 September 2025 to 19 September 2025 [3]. - The bonds will mature on 24 September 2028, with the first trading day expected around 25 September 2025 on the Nasdaq Tallinn Stock Exchange [2][3]. Legal and Financial Structure - The bonds are classified as unsecured and unsubordinated, meaning they do not have collateral backing and rank equally with other unsecured obligations of Arco Vara AS [2]. - Key covenants include maintaining an equity ratio of at least 35% of total assets and ensuring ownership in subsidiaries remains above 75% [2]. Investor Engagement - An investor event is scheduled for 10 September 2025 in Tallinn, where market trends and Arco Vara's operations will be discussed, along with detailed bond terms [8]. - The prospectus and bond terms are available on Arco Vara's website and the Estonian Financial Supervision Authority's website [7].