SATO CORPORATION ANNOUNCES ITS INAUGURAL EUR 300 MILLION SENIOR UNSECURED BOND ISSUANCE
3 September 2015
SATO Corporation today announces its inaugural EUR 300 million senior unsecured bond issuance. The bonds have been successfully offered to European institutional investors and are expected to be issued on or around 10 September 2015.
The bonds have a 5 year maturity and will bear an annual fixed interest rate of 2.25 percent. The bonds are unsecured and will be unconditionally and irrevocably guaranteed by two subsidiaries of SATO.
The transaction attracted broad interest from both Nordic and European investors and the order book for the bonds was well oversubscribed. SATO will apply for listing of the bonds on the Official List of the Irish Stock Exchange and for bonds to be admitted to trading on its regulated market. The bonds are expected to be rated Baa3 by Moody’s, in line with SATO’s corporate rating.
SATO’s CFO Esa Neuvonen:
- SATO’s strategic goal is to increase the value of the investment portfolio from current approximately €2.7 billion to €4.0 billion by the end of 2020. Achieving an investment grade credit rating and forming a diverse funding structure support SATO’s growth ambitions. Public credit rating and this unsecured Eurobond are in line with our aim to increase the portion of unsecured financing and to diversify our funding sources.
Deutsche Bank, Nordea Markets, Pohjola Markets and Swedbank acted as lead managers and bookrunners for the transaction.
For more information please contact:
CFO Esa Neuvonen, tel. +358 40 5001 003
Group Treasurer Janne Runsamo, tel. +358 45 6713 567
The information contained in this release shall not constitute an offer to sell or the solicitation of an offer to buy securities of SATO Corporation in any jurisdiction. In particular, this release does not constitute an offer to sell, or a solicitation of offers to purchase or subscribe for, securities in the United States. Any securities referred to herein have not been, and will not be, registered under the Securities Act of 1933, as amended, and may not be offered, exercised or sold in the United States absent registration or an applicable exemption from registration requirements.
SATO is one of Finland's leading corporate investors in housing. SATO’s aim is to offer comprehensive alternatives in rental housing and an excellent customer experience. All told, SATO holds roughly 24,400 rental homes in Finland’s largest growth centres and in St Petersburg.
In our operations, we promote sustainable development and initiative-taking, and work in open interaction with our stakeholders to create added value. We operate profitably and with a long-term view. We increase the value of our housing property through investments, divestments and repair work.
SATO Group's net sales in 2014 were €312.3 million, operating profit €191.3 million and profit before taxes €152.2 million. SATO's investment properties have a value of roughly €2.7 billion.