UBM Development AG Shows Strong Green Bond Performance

On October 17, 2024, UBM Development AG received a positive research update from NuWays AG, recommending a 'Buy' status with a target price of €27. This update follows the successful exchange offer of UBM's new green bond, which saw a nominal amount of €73.6 million exchanged. This represents approximately 25% participation from existing '19-'25 and '21-'26 bondholders, reflecting investor confidence.

The new green bond aims to raise between €100 million and €150 million, with a five-year term and a 7% annual coupon. Private placements for new investors are open from October 16 to October 22, 2024. The issuance will bolster UBM's financial position, with an equity ratio over 30%, an LTV of 46%, and liquid funds at €180 million as of the first half of the year.

Proceeds will be directed toward refinancing and supporting green projects within UBM's Green Finance Framework, including timber-hybrid projects. With no significant debt maturities until 2025, UBM maintains a robust outlook.