#Finland #Kojamo #Helsinki #Debt Management #Note Issuance

Kojamo's Strategic Move: New Note Issuance and Buyback Offer

In a notable announcement dated March 3, 2025, Kojamo plc, Finland's largest private residential real estate company, revealed its plan to issue new notes and simultaneously initiate an offer to purchase its existing €300 million notes due in 2026. This decision comes as part of Kojamo's broader strategy to optimize its debt maturity profile and strengthen its financial standing.

Understanding the Offer

Kojamo’s invitation aims to encourage holders of its 2.000% notes, which are approaching maturity, to tender their notes for cash. The tender offer signifies Kojamo’s proactive approach to managing its debt by potentially refinancing existing obligations. The financial landscape is ever-changing, and the company's move hints at a desire to realign its debt structure in a more favorable manner.

The specifics of the offer are outlined in the Tender Offer Memorandum, emphasizing the company's goal to satisfy or waive the New Financing Condition prior to acceptance of the offered notes for purchase. The aim is to ensure the successful rollout of the issuance of new euro-denominated fixed-rate notes under its €2.5 billion Medium Term Note Programme.

Purchase Price and Conditions

The purchase price for the notes accepted will depend on market conditions as defined around 11:00 a.m. CET on March 11, 2025, taking into account the Interpolated Mid-Swap Rate and a Purchase Spread of +45 basis points. This determination aligns with typical market practices for debt instrument pricing.

Accrued Interest Payments

Alongside the purchase price, Kojamo will also compensate noteholders for any accrued interest from March 31, 2024, until the settlement date, thereby making the offer more appealing to investors and ensuring they are fairly compensated for their investment during the buyback process.

Why the Move?

Increasing efficiency in debt management is a core reason for this strategic initiative. Maintaining a balanced debt maturity profile helps Kojamo mitigate risks associated with market fluctuations and improves overall liquidity. The new notes' issuance will provide the company with fresh capital, allowing it to finance further investments in property development and management, thus adhering to its mission of enhancing urban housing in Finland.

Participation and Procedure

To participate in this offer, noteholders must submit their Tender Instructions by 5:00 p.m. CET on March 10, 2025. The participation terms further require a minimum nominal amount of €100,000 in notes to ensure that the process remains efficient and streamlined. Tender instructions cannot be revoked except in very limited scenarios, urging noteholders to act swiftly.

Additionally, the company encourages potential investors interested in the new notes to consult with their financial advisors before making any investment decisions, as further details will be revealed in the base prospectus and final terms.

Conclusion

Kojamo's decision to issue new notes while simultaneously managing its outstanding ones creates a dual momentum for the company. It not only signifies a strategic financial initiative but also reinforces Kojamo’s position as a leader in Finland's real estate market. As the industry evolves, staying ahead of financing needs and market opportunities will be crucial for long-term success.

Through these new financial instruments, Kojamo is set to enhance its capabilities in the property market while continuing its commitment to providing quality urban housing solutions for its residents.