EIKA Group plans to borrow under new conditions for the Užupio Personos project

This week, EIKA Group redeemed a € 1 million bond issue two months ahead of schedule, which had been issued for the residential project Užupio Personos in May 2024. To develop this premium class project in Vilnius' Užupis, the BeMyBond bond platform then attracted € 1 million from investors with an annual interest rate of 9%, for an 18-month term.

On September 30, it is planned to start distributing the second bond issue of this premium class project Užupio Personos managed by EIKA Development. It will be worth € 1.3 million, with an annual interest rate of 5.75%, a term of 12 months, and the possibility to invest from € 1 000, i.e., the nominal value of one bond. The distribution will last until October 9, or until the total amount is funded. The distribution will be carried out via the BeMyBond investment in bonds platform.

‘This project is a good example of how capital market instruments help develop premium class housing in Lithuania. The first bond issue allowed us to successfully finance the early stage of the project, and now, as the landscaping works near completion and the first residents are starting to decorate their apartments, we offer investors new, safer conditions. This way, investors get the chance to participate in a reliable project, and we get a flexible source of financing,‘ says Tomas Žiaugra, Director of the Development Department at EIKA Development.

It is planned that the funds raised during the bond issue will be repaid from the revenues received for the apartments sold. The bonds will be secured by a second-ranking mortgage of the project's real estate on Filaretų St. 25, Vilnius. The Artea Bank, holding the first-ranking mortgage, also participates in the project financing.

‘After the completion of the main construction works and with the sales of apartments in the Užupio Personos project picking up pace, the project risk has significantly decreased, and over time, market base interest rates have also fallen. Hence, it is natural for the issuer to redeem the more expensive bond issue and borrow under new conditions. By eliminating development risk, we consider this a safe project, balanced for our quite conservative investor base,‘ says Indrė Dargytė, the CEO of BeMyBond.

The funds raised during the bond issue will be used to the premium class housing project Užupio Personos in the Užupis district of Vilnius. The main construction works of the project are already completed, and the final approval process is underway. The complex consists of three residential buildings: a five-story building along Filaretų Street and two more private low-rise apartment buildings in the inner part of the area. A total of 57 uniquely designed apartments and commercial spaces have been offered to the market, with almost 40% already sold. The project features architectural solutions adapted to the hilly landscape of Užupis, offering views of the rooftops of Vilnius Old Town and the green spaces of the Pavilniai Regional Park.