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The KNF has approved the prospectus for the new bond issuance program of Cavatina Holding S.A.

COMPANIESThe KNF has approved the prospectus for the new bond issuance program of Cavatina Holding S.A.

The new bond issuance program allows Cavatina Holding S.A. to issue bonds worth up to PLN 150 million (or the equivalent in EUR). These bonds will be issued based on a prospectus approved by the KNF on April 25, 2024. Previously, in February this year, Cavatina announced a strategic shift to focus on new residential projects while continuing to commercialize and increase the value of its office portfolio.

On April 30, Cavatina Holding published its financial results for 2023, achieving a consolidated net profit three times higher than the previous year and a nearly 80% increase in consolidated operating profit. The developer is currently focusing on diversifying its operations in line with the strategic objectives presented at the beginning of the year. Bonds remain a key source of financing. Established in March 2024, the bond program allows for the issuance of secured bonds in one or multiple series totaling up to PLN 150 million, with the option of issuance in both zloty and euro. Similar to the previous bond issuance program in 2023, the issuances will be conducted under a public offer, and subsequent series will be submitted for trading on the Catalyst market (regulated market or ASO).

“In recent months, we have significantly marked our presence in the residential market—we presented the preliminary concept of the complex at Chmielna 75 in Warsaw, launched the next phase of the revitalization of the WIMA Widzewska Manufaktura project, and decided to repurpose the largest post-factory building WIMA A for residential use. We also started the construction of the Belg project in Katowice, and more investments are in the pipeline. The skills accumulated within the group allow us to flexibly approach business development—we aim to capitalize on the current prospects of the residential market in Poland. With the prospectus approved by the KNF, we can continue to raise funds for our plans using various financing sources, including bonds,” says Daniel Draga, Vice President of the Management Board of Cavatina Holding S.A.

Noble Securities S.A. will be responsible for organizing the offer and creating the distribution consortium. The joint history of the Company and Noble Securities dates back to 2022. Since then, the entities have collaborated on 10 bond issuances, including the last 2 offers conducted in 2024 based on an information memorandum, from which the Company raised a total of PLN 41.65 million.

“We have established ourselves as an effective player in the real estate market, achieving ambitious goals and quickly responding to changes in the macroeconomic environment. As a result, we can rely on the support of individual investors and financial institutions. In 2023 alone, we issued bonds worth over PLN 115 million and successfully secured financing or refinancing for the Quorum A, B, and D, Palio A, WIMA D, and Cavatina Hall B projects—raising approximately PLN 600 million through loans and borrowings. As a company listed on the Warsaw Stock Exchange since 2021, we aim to become a dividend-paying company in the coming years, regularly sharing profits with investors,” adds Daniel Draga.

Cavatina Holding S.A. is one of the largest commercial real estate developers in Poland. Since its inception, the Group has completed 21 commercial projects with a total area of over 325,000 sqm GLA. According to the newly adopted strategy, from 2024, the Issuer’s Group is also expanding its activities in the residential segment, aiming to become a leading player in this market. Currently, three residential projects with a total area of nearly 25,000 PUM are under construction, delivering over 650 apartments to the market, with another two projects with a total area of at least 47,000 PUM in preparation. Commercial projects with a total area of almost 38,000 sqm GLA are also under development. The Group operates in major cities in Poland. The projects implemented by the Group stand out with unique architecture, awarded in Polish and international competitions, and high-quality finishes. The Cavatina Holding S.A. Group emphasizes sustainable construction and the comfort and safety of residential and office users. This ensures that office buildings from Cavatina’s portfolio easily obtain BREEAM and WELL Health & Safety Rating certifications. The Group also places great importance on the city-building role of its projects, ensuring they naturally integrate into the existing urban fabric and meet the needs of the local community.

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