Cologne/Berlin May 31, 2019 – In May 2018, TERRAGON AG (https://www.terragon-ag.de), a Germanwide project developer specializing in homes for the elderly, successfully placed a corporate bond (ISIN DE000A2GSWY7, WKN A2GSWY) with a volume of EUR 25 million and a term of five years. IR.on AG supported the company’s first bond placement as investor relations and communications consultant.
The bond with an annual fixed interest rate of 6.5% met with strong demand from both institutional and private investors (LINK). The success of the transaction is based on an experienced management that – backed by a professional and committed team – has established TERRAGON AG as a leading property developer for assisted living in Germany over the past 20 years. In this field, the company focuses on the attractive growth market of “serviced homes for senior citizens”, in which it has a high secured project volume as well as a strong acquisition pipeline.
Another key factor for the successful issue was the support provided by experienced partners – an important aspect especially for newly players on the capital market (see IR.on SME bond survey). Ralph Breuling, Supervisory Board member of TERRAGON AG and consultant, previously long-standing CFO of the successful bond issuer Karlsberg Brauerei, coordinated the efficient teamwork with the issuing bank IKB Deutsche Industriebank AG and the legal advisor Heuking Kühn Lüer Wojtek, ensuring capital market readiness in all respects and lead the transaction to success.
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