Friday 22nd March 2019 14:34
NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, DIRECTLY OR INDIRECTLY, IN OR INTO THE UNITED STATES, CANADA, AUSTRALIA, HONG KONG, SOUTH AFRICA, SINGAPORE OR JAPAN OR ANY OTHER JURISDICTION IN WHICH THE DISTRIBUTION OR RELEASE WOULD BE UNLAWFUL.
Consti Group Plc issues EUR 3.2 million hybrid bond
Consti Group Plc ("Consti" or the "Company") issues a EUR 3.2 million hybrid bond. The bond bears interest at a fixed interest rate of 12.0 per cent until the reset date and thereafter, the interest rate will be determined on each second (2) anniversary of the issue date. The hybrid bond does not have a specified maturity date but Consti is entitled to redeem the hybrid bond for the first time on the second (2) anniversary of the issue date, and subsequently, on each annual coupon interest payment date. The issue date is expected to be on or about 29 March 2019.
The net proceeds of the issuance will be used for general corporate purposes.
"We would like to thank our investors for their interest in Consti's hybrid bond. The hybrid bond transaction strengthens our capital structure, broadens our financing base and supports the implementation of our change program" says Esa Korkeela, CEO of Consti.
A hybrid bond is an instrument that is subordinated to certain other debt obligations and is treated as equity on Consti's consolidated financial statements prepared in accordance with IFRS. A hybrid bond does not confer its holder the rights of a shareholder nor does it dilute the holdings of the current shareholders.
A key information document relating to the hybrid bond, prepared in accordance with the PRIIPs Regulation ((EU) 1286/2014, as amended), will be revised to include final pricing information and made available on Consti's website at investor.consti.fi as soon as possible.
OP Corporate Bank plc acts as the Lead Manager for the hybrid bond issue. Borenius Attorneys Ltd acts as legal counsel to Consti in the hybrid bond issue.
Thursday 7th March 2019 14:16
NOT
FOR RELEASE, PUBLICATION OR DISTRIBUTION, DIRECTLY OR INDIRECTLY, IN OR
INTO THE UNITED STATES, CANADA, AUSTRALIA, HONG KONG, SOUTH AFRICA,
SINGAPORE OR JAPAN OR ANY OTHER JURISDICTION IN WHICH THE DISTRIBUTION
OR RELEASE WOULD BE UNLAWFUL.
Consti Group Plc considers issuance of a hybrid bond
Consti Group Plc (”Consti” or the ”Company”)
is considering issuance of a hybrid bond with an expected size of EUR
10 million. The potential issuance is expected to be launched in the
near future, subject to market conditions. The net proceeds of the
issuance would be used for general corporate purposes.
The
hybrid bond would be offered to professional clients and eligible
counterparties in Finland and the European Economic Area as well as to
selected retail clients ("Selected Retail Clients") in
Finland in accordance with the target market defined by the Lead Manager
(professional clients, eligible counterparties and retail clients each
as defined in the recast Markets in Financial Instruments Directive
(Directive 2014/65/EU, as amended)).
A key
information document relating to the hybrid bond, prepared in accordance
with the PRIIPs Regulation (Regulation 2014/1286/EU, as amended), will
be provided to any Selected Retail Clients considering an investment in
the hybrid bond before being bound by any subscription commitment in
respect of the hybrid bond. The key information document will be made
available on Consti's website at investor.consti.fi. A revised version
of the key information document will be made available at the
above-mentioned website as soon as possible after the completion of the
book-building procedure, such version having been revised to include
final pricing information.
A hybrid bond is an
instrument that is subordinated to certain other debt obligations and is
treated as equity on Consti’s consolidated financial statements
prepared in accordance with IFRS. A hybrid bond does not confer its
holder the rights of a shareholder nor does it dilute the holdings of
the current shareholders.
OP Corporate Bank plc acts as the Lead
Manager for the hybrid bond issue. Borenius Attorneys Ltd acts as legal
counsel to Consti in the hybrid bond issue.
Important information
MiFID II product governance / Professional Investors, ECPs and retail clients target market
Solely
for the purposes of the manufacturer’s product approval process, the
target market assessment in respect of the hybrid bond has led to the
conclusion that:
1) the target market for the hybrid bond is:
(a) eligible counterparties, professional clients and retail clients, each as defined in Directive 2014/65/EU (as amended, “MiFID II”);
(b)
informed investors, having average knowledge of relevant financial
products (an informed investor can make an informed investment decision
based on the regulated and authorised offering documentation, together
with knowledge and understanding of the specific factors/risks
highlighted with them only) and advanced investors, having one, or more,
of the following characteristics; (i) good knowledge of relevant
financial products and transactions, or (ii) financial industry
experience or accompanied by professional investment advice or included
in a discretionary portfolio service;
(c)
clients that have the ability to bear losses of up to 100% of the
capital invested in the product, and who have a high risk tolerance and
therefore do not need a fully guaranteed income or return profile;
(d)
clients whose investment objective is to generate growth of the
invested capital and have a medium- to long-term investment horizon.
2) all channels for distribution of the hybrid bond to eligible counterparties and professional clients are appropriate; and
3)
the following channels for distribution of the hybrid bond to retail
clients are appropriate: investment advice, portfolio management and
non-advised sales or execution with appropriateness test, subject to the
distributor’s suitability and appropriateness obligations under MiFID
II, as applicable.
Any person subsequently
offering, selling or recommending the hybrid bond (a “distributor”)
should take into consideration the manufacturer’s target market
assessment; however, a distributor subject to MiFID II is responsible
for undertaking its own target market assessment in respect of the
hybrid bond (by either adopting or refining the manufacturers’ target
market assessment) and determining appropriate distribution channels.
The Lead Manager is the manufacturer of the hybrid bond for the purposes
of MiFID II product governance rules.
Notice to prospective investors in the European Economic Area (including Finland)
This
announcement has been prepared on the basis that any offers of the
hybrid bond in the EEA, if and when made, will be made pursuant to an
exemption under the Directive 2003/71/EC (as amended) (the “Prospectus Directive”),
as implemented in the member states of the EEA, from the requirement to
produce a prospectus under the Prospectus Directive for offers of
securities, and in particular, any offer of the hybrid bond will be made
pursuant to an exemption set out in Article 3(2) of the Prospectus
Directive (in Finland pursuant to an exemption under Chapter 4, Section 3
of the Finnish Securities Markets Act). Accordingly, any person making
or intending to make any offer of the hybrid bond within the EEA should
only do so in circumstances in which no obligation arises for Consti or
the Lead Manager to publish a prospectus under the Prospectus Directive
for such offer. Neither Consti nor the Lead Manager has authorized, nor
do they authorize, the making of any offer of securities through any
financial intermediary.
In relation to each member state of the EEA which has implemented the Prospectus Directive (each a “Relevant Member State”),
an offer to the public of any hybrid bond may not be made in that
Relevant Member State, except that an offer of the hybrid bond to the
public in that Relevant Member State may be made at any time under the
following exemptions from the Prospectus Directive, if they have been
implemented in that Relevant Member State:
1. to any legal entity which is a qualified investor as defined in the Prospectus Directive;
2. to investors who acquire the hybrid bond for a total consideration of at least EUR 100,000 per investor; and/or
3. in any other circumstances falling within Article 3(2) of the Prospectus Directive,
in
each case provided that no such offer of the hybrid bond shall result
in a requirement for the publication of a prospectus pursuant to Article
3 of the Prospectus Directive or the preparation of a key information
document in any language other than Finnish pursuant to the PRIIPs
Regulation by Consti or the Lead Manager.
For
the purposes of this provision, the expression an “offer to the public”
in relation to the hybrid bond in any Relevant Member State means the
communication in any form and by any means of sufficient information on
the terms of the offer of the hybrid bond to be offered so as to enable
an investor to decide to purchase hybrid bond, as the same may be varied
in that Member State by any measure implementing the Prospectus
Directive in that Member State.
Additional information
The
information contained herein is not for release, publication or
distribution, in whole or in part, directly or indirectly, in or into
Australia, Canada, Hong Kong, Japan, New Zealand, South Africa or the
United States or such other countries or otherwise in such circumstances
in which the release, publication or distribution would be unlawful.
The information contained herein does not constitute an offer to sell or
the solicitation of an offer to buy, nor shall there be any sale of,
the hybrid bond in any jurisdiction in which such offer, solicitation or
sale would be unlawful prior to registration, exemption from
registration or qualification under the securities laws of any such
jurisdiction.
This communication does not
constitute an offer of securities for sale in the United States. The
hybrid bond has not been and will not be registered under the U.S.
Securities Act of 1933, as amended (the “Securities Act”)
or under the applicable securities laws of any state of the United
States and may not be offered or sold, directly or indirectly, within
the United States or to, or for the account or benefit of, U.S. persons
except pursuant to an applicable exemption from, or in a transaction not
subject to, the registration requirements of the Securities Act.
This
communication does not constitute an offer of the hybrid bond to the
public in the United Kingdom. No prospectus has been or will be approved
in the United Kingdom in respect of the hybrid bond. Consequently, this
communication is directed only at (i) persons who are outside the
United Kingdom, (ii) investment professionals falling within Article
19(5) of the Financial Services and Markets Act 2000 (Financial
Promotion) Order 2005 (the “Order”), (iii) high net
worth entities falling within Article 49(2) and (iv) other persons to
whom this communication may lawfully be distributed (all such persons
together being referred to as “relevant persons”). Any
investment activity which this communication relates will only be
available to, and will only be engaged with, relevant persons. Any
person who is not a relevant person should not act or rely on this
document or any of its contents.