Highlight 12 March 2013

Krogerus advises arranger and dealers in SATO Corporation’s pioneering EUR 500 million secured note issuance programme

Krogerus advised Pohjola Bank plc, as arranger and dealer, and the other dealers in SATO Corporation’s EUR 500 million secured note issuance programme.

“This is the first secured note programme in Finland by a corporate issuer,” says lead partner Päivi Toivari, head of the firm’s Banking and Finance practice.

The Finnish Financial Supervisory Authority approved the base prospectus for the secured note programme on 6 March 2013.

As the first tranche under the programme, SATO will, on 20 March 2013, issue EUR 100 million secured notes with a five-year maturity and 2.875% interest rate. The notes are secured by residential property. SATO intends to list the EUR 100 million secured notes for public trading on NASDAQ OMX Helsinki.

SATO is one of Finland’s leading corporate investors in housing. Its investment assets are valued at approximately EUR 2.1 billion. SATO will use the proceeds from the sale of the notes to invest mainly in rental property in the Helsinki metropolitan area and St. Petersburg.

In addition to Pohjola Bank plc, the firm also advised dealers Danske Bank A/S, Nordea Bank Finland Plc, Svenska Handelsbanken AB (publ) and Swedbank AB (publ).

Päivi was assisted by counsel Marjukka Sippola and senior associates Tom Fagernäs and Heta Rönkkö in this transaction.

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