September 27 (SeeNews) - Bulgarian real estate investment trust (REIT) Balkan and Sea Properties [BUL:BSP] said on Tuesday that it will change the collateral of a 40 million lev ($19.7 million/20.5 million euro) bond issue from an insurance policy to a mortgage on properties owned by the company.
The decision was made at a general meeting of bondholders held on September 23, the REIT said in a stock exchange filing.
According to an estimate by an independent expert, the value of the properties is 44.1 million levs, which exceeds the bond’s face value, the firm said.
As a result of the decision, the bond insurance issued by Bulgarian insurer Armeec will be terminated.
The bond was issued on October 27, 2021 and is due on October 27, 2030.
(1 euro = 1.95583 levs)