Marijas 2 SIA, managed by Evernord Real Estate Fund III and the Estonian development company Novira, has borrowed EUR 10.5 million in bonds and plans to borrow up to EUR 45 million in bonds in the future.

“Marijas 2 SIA has borrowed outside the public domain in bonds with a maturity of 2 years. These were purchased by investors at a discount – the 6.5% coupon bonds were issued at a yield of 7%.

“In order to reflect the growing political risk, a yield of 7% was chosen for this particular issue,” Arnas Vedecki, CFO and member of the Board of Evernord, told VŽ.

Vismantė Šepetienė, director of Evernord, the FMĮ that distributed the bonds with its partners, said that for the borrowing side the issue was “an excellent portfolio diversification tool”.

Marijas 2 SIA will use the funds raised for the construction of Novira Plaza, an office building in the centre of Riga.

The nearly 24,000 square metre office building is expected to be completed by the third quarter of 2023, with six of the seven floors currently built, the company said.

“Most of the office development in Riga is in converted apartment buildings, with new buildings going up further away from the centre. That is why we see excellent prospects for this project,” said Jolanta Jurga, founder of Evernord Group.

“Marijas 2 SIA plans to borrow up to EUR 45 million in total through bonds.