Press release
6 August 2024
In today's volatile markets, capital protection is not an unnecessary luxury.
6 August, Brussels - BeeBonds, the European-authorised crowdfunding platform specialising in real estate, is launching a new capital-assured loan in partnership with its insurance partner Atradius. Through the BeeBonds platform, Sodimco, a subsidiary of the Growners group specialising in the rental and sale of office space, is offering a green bond with insured capital and interest, for a maximum amount of €500,000. The issue has a term of 36 months and a gross interest rate of 7%, a high yield for an investment product secured by insurance.
Today's investors are looking for safe investments. Faced with the uncertainty and volatility of the financial markets, many are reluctant to take risks, preferring to hoard their capital or invest at lower yields. As well as guaranteeing that you will get your capital back, this loan offers attractive returns with a minimum amount that everyone can afford. The insurance guarantees that in the event of the issuer's insolvency, the investor will recover the capital invested and receive the interest due. What's more, BeeBonds allows subscribers to participate in this insured loan from as little as €100.
Joël Duysan, CEO of BeeBonds: " The markets are currently facing almost unprecedented turbulence. On Monday 5 August, the Nikkei index on the Japanese stock exchange lost 12%. This was the index's biggest daily loss since 1987, the year I started working as a stockbroker! With this new capital-protected issue, we want to offer investors the chance to invest their savings in a quality product that is as secure as possible. Our aim is to support the real economy and the energy transition, while offering attractive returns that are independent of market volatility." .
BeeBonds turned to Atradius to underwrite the issue. Atradius is the world's second largest credit insurer, offering credit insurance, debt collection and bonding solutions in over 50 countries to protect companies and creditors against default. In addition, capital-insured projects undergo the same stringent selection and review process as non-capital-insured projects. What's more, Atradius also carries out an in-depth analysis before giving the green light: an additional guarantee for the investor.
Two slices
In addition to the loan with capital insurance, Sodimco will also issue an ordinary subordinated bond without capital insurance via the BeeBonds platform for an additional amount of 500,000 euros, with the same 36-month maturity but a higher yield of 10 % gross. The fact that Atradius currently limits this type of cover to a maximum of €500,000 meant that it was not possible to carry out a fully insured issue, which also explains the difference in yield between the two tranches If the two issues are fully placed, Sodimco* will therefore have €1,000,000 at its disposal. Investors can subscribe to both tranches from 11am on Thursday 8 August 2024.
Sodimco will use the funds raised to renovate its vacant office building Riverside H in Anderlecht, just on the border with Sint-Pieters Leeuw, to make it more energy efficient and to upgrade its EPB label from D to B, which will enable the offices to be re-let and then sold off individually or in blocks. As the funds will be used for energy renovation, this can be described as a 'green bond'.
Building Riverside H in Anderlecht
The energy renovation of building Riverside H will begin in September 2024 and will last approximately one year. The impact of these energy interventions, which do not require a permit, will be significant: fuel consumption will fall by 67 % and electricity consumption by 37 %, while CO2 emissions will be reduced by 54 %. According to Sodimco, 50 % of the office space should be let by the first quarter of 2026, while the remaining 50 % should be sold by then. The 50 % let will then be sold in the first quarter of 2027. Riverside H is part of Riverside Business Park, a complex of 12 office buildings. Sodimco also owns buildings D, E and K in the park. In total, Sodimco manages 5 office parks and generates rental income of €1.3 million a year.
*Technically, BeeBonds Finance, a subsidiary of BeeBonds, will raise the funds and, once they have been raised, will grant a loan to Sodimco for the amount raised and with the same maturity.
About BeeBonds
BeeBonds, a crowdfunding platform specialising in real estate and accredited as an Equity Crowdfunding Service Provider (ECSP), enables project sponsors or owners to obtain additional financing, ranging from €500k to €5M, and offers investors (individuals or legal entities) the opportunity to book attractive returns.
BeeBonds' added value is to democratise access to projects usually reserved for professional investors, with the same quality of analysis. For each project financed, BeeBonds donates a beehive to a beekeeper (the beehive symbolises the participative financing model supported by the platform). To date, 60 hives, representing several million bees, have been donated by BeeBonds.
