Summus Capital plans a new bond issue of up to 15 million euros

9:57 4.04.2024

Estonia based real estate investment holding Summus Capital announces that it is preparing to issue new bonds. Subject to market conditions bonds are to be issued in the 2nd quarter of 2024 through a private placement with an issue size of up to 15 million euros.

New funding is expected to be used for refinancing existing bond obligations and to support business growth.

“Current bonds issued in 2021 in the amount of 10 million euros with maturity in June 2024 make up 2.3% of the total Group’s total balance sheet. Summus Capital plans to refinance the existing bonds with a new bond issue, as the Group continues to value the benefits from raising funding from capital markets to diversify Group’s funding sources,” said Aavo Koppel, Member of the Management Board of Summus Capital.

Summus Capital has engaged Signet Bank AS as the lead manager of the bond issue. Signet Bank AS has also advised the Group on its debut bond issue and acted as certified advisor for inclusion of the bonds in First North.

This announcement does not constitute an offer to sell or the solicitation of an offer to buy the bonds, nor shall there be any offer or sale of the bonds in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration, exemption from registration or qualification under the securities laws of any such state or other jurisdiction. Any offer of the bonds will be made only by means of a private placement.

About Summus Capital

Summus Capital is an Estonia based real estate investment holding with investments in all 3 Baltic countries that started operations in 2013. Its current property value amounts above EUR 401m and as of end of 2023, total assets were EUR 427m. Summus Capital has a strong and stable own capital base with total shareholder’s equity of EUR 183.5m and equity to assets ratio of 43%. The holding makes direct real estate investments through SPVs of the respective country of location.

Summus Capital has a well diversified commercial real estate portfolio of 14 properties in Retail, Office, Logistics, and Medical segments and ambitious portfolio expansion pipeline. Its diversified and stable tenant base amounts to 420+ tenants, with anchor tenants being established regional names representing various sectors. Anchor tenants make up around 60% of total rental revenue, as Summus aims to own properties where anchor tenants generate substantial portion of the total cash flow. The holdings properties hold high and stable occupancy rate of above 96% in the last years, and the weighted average unexpired lease term (WAULT) of 4.3 years ensures stable and predictable cash flows.

In September 2021, the international rating agency Scope assigned a first-time issuer rating of BB/Stable to Summus Capital, making it the first Baltic company to obtain a Scope rating. The rating has since been re-affirmed by the agency for two following consecutive years, most recently in September 2023.