7R has successfully completed its Series D bond issue with a total value of PLN 52 million. The bonds were issued for a period of three years, with the interest rate set at WIBOR 6M + 4.25%. The offering attracted both institutional investors and selected private investors.
The funds raised will be used to support the further development of 7R’s warehouse portfolio.
The terms of the issue confirm the capital market’s growing confidence in 7R and the company’s steadily improving credit risk profile. The margin on the Series D bonds amounted to 4.25%, compared with 4.80% in previous PLN-denominated issues, and significantly below the 5.5% level of the company’s euro-denominated issue. The lower cost of financing means greater efficiency in raising capital for 7R and creates additional room for further scaling up its operations.
“Securing financing on increasingly favorable terms is a direct result of the consistent implementation of our financial strategy and the improving credit profile of the 7R Group. The lower cost of debt increases the efficiency of capital allocation and gives us greater flexibility in further scaling our business. The Series D bond issue strengthens 7R’s financing structure and supports the long-term development of our warehouse portfolio in Poland, the Czech Republic, and Germany, where we plan to build a balance sheet portfolio of 800,000 square meters over the next few years,” commented Tomasz Mika, Member of the Management Board and CFO at 7R.
The placement of the bonds also coincides with positive market signals regarding demand for warehouse space, which reached 6.8 million square meters last year, the second-highest result in history, surpassed only by the record level seen in 2021. The declining vacancy rate in existing warehouse space is driving growing interest in new projects, both in major markets and in emerging locations.
“We would like to thank investors for the trust they have placed in 7R in a demanding and volatile market environment. The success of the issue and the significant reduction in the margin confirm growing investor interest in our credit profile and the quality of our assets. This is a clear signal that the capital market views 7R’s financial stability and the long-term potential of our business positively,” said Piotr Pikiewicz, Head of Debt & Treasury at 7R.
