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Confronted with the drop in its share price, the group reiterates that it does not currently need to resort to the financial markets. The group does not intend to use any of the available step-up equity possibilities (PACEO) in the foreseeable future. The disposal programme is on schedule. The group therefore confirms its €200 million asset sales target by year end.
The group secured the requisite treasury position to reimburse the remaining part of the straight Czech bond that was issued in February 2006 for 1,400,000,000 CZK. As of 30 September, 78% of the issue has been reimbursed.
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Aside from this bond, there is no corporate covenant linked to agency ratings or to the group’s share price that could affect our bond debts or banking debts. There has been no breach of covenant on any of our mortgage financing; nor is any foreseen.
“Our core historic shareholders did not sell any shares and we believe the drop is partly due to massive short selling. The next reimbursement of bonds will take place in 26 months, in November 2010,” said Arnaud Bricout, vice president of Orco Property Group.
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