MILAN, May 30 (Reuters) - Italy’s Prelios said on Thursday its board gave a green light to the issuance of a mandatory convertible bond to help relaunch the real estate company.
In a statement the company said the bond would have a nominal value of 269 million euros.
Prelios said it would issue new shares in the company worth 297.6 million euros to service the mandatory bond upon conversion.
Final terms will be decided by the board on June 10, it said.
The heavily indebted company manages properties in Italy and Germany and has been hit hard by writedowns on real estate investments in its recession-hit home market.
Reporting By Francesca Landini, editing by Stephen Jewkes