Outcome of Subscription to Arco Vara AS Bonds
On Friday, September 19, 2025, the public offering of Arco Vara AS bonds ended. The offering was carried out on the basis of the prospectus approved by the Estonian Financial Supervision Authority on September 8, 2025. As part of the offering, Arco Vara AS offered, as a base volume, 100,000 bonds “EUR 8.80 ARCO VARA BOND 25-2028” with a nominal value of EUR 100 per bond, maturing on 24 September 2028 and bearing a fixed annual interest rate of 8.8% payable quarterly. In the event of oversubscription, Arco Vara AS had the right to increase the offering volume up to 150,000 bonds.
In total, 3,392 unique investors participated in the subscription, subscribing for bonds in the amount of EUR 21.9 million. Thus, the base volume of the issue of EUR 10 million was oversubscribed 2.2 times.
In accordance with the prospectus, Arco Vara AS exercised the right to increase the offering volume by 50,000 bonds, as a result of which the total issue volume increased to EUR 15 million. The management board of Arco Vara AS, with the approval by the supervisory board, decided on the allocation of the offered bonds at its discretion, based inter alia on the following principles:
- All subscription orders placed by the same subscriber were aggregated;
- 3.9 million EUR were subscribed by the investors who, as of the end of the settlement day on September 9, 2025, were either shareholders or bondholders of Arco Vara AS. These investors were allocated 100% of the amount subscribed by them. Thus, 26% of all issued bonds were allocated to them;
- To the investors who subscribed for the bonds in the amount of less than 100,000 euros, at least 40% of the subscribed amount was allocated, but not less than 50 bonds (5,000 euros).
- To the investors who subscribed for the bonds in the amount of at least 100,000 euros, at least 53.9% of the subscribed amount was allocated.
- The number of bonds with decimal places was rounded up to the nearest whole number.
As a result of the issuance, Arco Vara AS will issue 150,000 bonds with a nominal value of EUR 100, an annual interest rate of 8.8% and a maturity date of September 24, 2028, resulting in a total issuance volume of EUR 15 million. The bonds will be transferred to investors’ securities accounts on or about September 24, 2025, and trading on the Baltic Bond List of Nasdaq Tallinn Stock Exchange is anticipated to commence on or about September 25, 2025.
Comment by Tarmo Sild, Member of the Supervisory Board and major shareholder of Arco Vara AS:
“We can say that the value offered to investors was formed by the bond terms, our reputation, Arco Vara’s outlook, and the management’s work in marketing the issue. The issue gave us valuable feedback on where we stand in the capital markets when raising money. Now our task is to prove that we can put the raised capital to work wisely and make money with money.”Comment by Kristina Mustonen, Member of the Management Board and CEO of Arco Vara AS:
“I would like to thank all investors for their trust and support. My sincere thanks also go to the entire Arco Vara team, whose efforts made this issue possible, as well as to our co-managers AS LHV PANK and Redgate Capital for their professional cooperation. The successful subscription of the bonds demonstrates that the market believes in our vision and in the team’s ability to deliver it.”Comment by Silver Kalmus, Debt Securities Area Manager of the offering co-manager AS LHV Pank:
“It’s great that Baltic fixed income investors have the opportunity to contribute to the development and reconstruction of the historic Lutheri Quarter, one of Tallinn’s most significant upcoming urban projects. Arco Vara is carrying out this project with a strong financial position and a sound capital structure, which provides a solid foundation for its successful implementation.”Comment by Valeria Kiisk, partner of the offering co-manager AS Redgate Capital:
“Successful bond issue is an important milestone not only for Arco Vara AS but also in the context of the Baltic capital markets – this is so far the largest standalone issuance by a real estate developer. As an organiser, I am pleased that an issuer with a clear governance structure and outlook, and with a long history on the Tallinn Stock Exchange, has attracted considerable attention from both institutional and retail investors.”
Darja Bolshakova
CFO
Arco Vara AS
This notice is an advertisement for securities within the meaning of the Regulation No 2017/1129/EU of 14 June 2017 of the European Parliament and of the Council of the European Parliament, and does not constitute an offer to sell or invitation to subscribe to bonds of Arco Vara AS. The information contained in this notice is not intended to be published, distributed, or transmitted, in whole or in part, directly or indirectly, in any other country or under any circumstance where publication, sharing, or transmission would be unlawful. Bonds of Arco Vara AS will be publicly offered only in Estonia, and the sale or offer of the bonds shall not take place in any jurisdiction where such offer, invitation, or sale would be unlawful without the exception or qualification of law.
