Deutsche Konsum REIT-AG Announces EUR 10 Million Convertible Bond Issue

Deutsche Konsum REIT-AG has officially launched a subordinated secured convertible bond issue valued at EUR 10 million. This financial maneuver was carefully planned and executed with the unanimous consent of both the management board and the supervisory board of the company. Notably, this bond issue operates under the exclusion of subscription rights for the company's current shareholders.

Specifically, the convertible bonds are available to institutional investors and are pegged at a nominal amount of EUR 1,000 per bond, issued at 98.5% of their nominal value, resulting in an issue price of EUR 985 per bond. An interesting aspect of these bonds is their high-interest rate of 12% per annum, which is to be paid out quarterly, with the full repayment scheduled for the 5th of October, 2025 unless an earlier conversion or repayment is initiated.

The initial conversion price is set at EUR 2.85 per bond. Additionally, it has been mentioned that there will be no admission or inclusion of these bonds for trading in any stock exchange. The funds raised from this issue are intended for the general corporate financing purposes of Deutsche Konsum REIT-AG, seeking to solidify the company's financial foundation and facilitate future growth initiatives.