Company News

Vonovia seeks 1 bln euro capital hike to pay debt

BERLIN, Sept 3 (Reuters) - German residential real estate company Vonovia said on Thursday it was seeking to raise about 1 billion euros ($1.18 billion) by offering new shares to institutional investors, with proceeds to be used to repay debt due in the fourth quarter.

The constituent of Germany’s blue-chip DAX index said the private placement would be initiated immediately and the new shares would carry full dividend rights as from Jan. 1, 2020.

Vonovia said last month it was coping well with the coronavirus pandemic, as it announced an 8% rise in first-half core profit and confirmed its guidance for the year. ($1 = 0.8455 euros) (Reporting by Emma Thomasson; Editing by Susan Fenton)