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Aalto University Foundation issues two bonds in the aggregate amount of EUR 150 million

The net proceeds from the Notes will be predominantly applied for refinancing existing loans taken out to finance real estate investments but also for general corporate purposes.
White Aalto logo with exclamation mark standing in the middle of Otaniemi campus in the summertime
Photo: Aalto-university/Mikko Raskinen

NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, IN WHOLE OR IN PART, DIRECTLY OR INDIRECTLY, IN OR INTO ANY JURISDICTION IN WHICH THE RELEASE, PUBLICATION OR DISTRIBUTION WOULD BE UNLAWFUL.

Aalto University Foundation sr (“Aalto University Foundation”) issues two senior unsecured bonds in the total aggregate nominal amount of EUR 150 million (the “Notes”).

The first 15-year bond in the nominal amount of EUR 75 million matures on 12 April 2039 and it carries a fixed annual interest of 4.000 per cent. The other, 20-year bond in the nominal amount of EUR 75 million matures on 12 April 2044 and it carries a fixed annual interest of 4.125 per cent.

‘This transaction secures long-term refinancing of our campus ecosystem in Otaniemi, Finland, that houses our international, multidisciplinary research community, our spin-off and startup activities, our diverse collaboration partners, as well as our student-led entrepreneurial community,’ says Aalto University’s Chief Financial Officer Marianna Bom.

‘While our major real estate investments on the campus are almost completed, we focus on the usability and adaptability of the campus and its services to meet current and future needs of our campus users,’ Bom continues.

‘The first ever bonds of Aalto University were met with substantial demand, especially from international investors. The pricing of the notes, along with their exceptionally long tenors reflect the uniqueness of the transaction, as well as Aalto University’s strong position as an issuer,’ says Aalto University’s Head of Treasury Eero Tuulos.

‘The bonds will be a key element of the university’s debit financing structure well into the future,’ Tuulos continues.

The issue date of the Notes is expected to be 12 April 2024. The net proceeds from the Notes will be predominantly applied for refinancing existing loans taken out to finance real estate investments but also for general corporate purposes.

Danske Bank A/S acts as the sole lead manager for the issue (the “Sole Lead Manager”). Borenius Attorneys Ltd acts as the transaction counsel for the issue.

AALTO UNIVERSITY FOUNDATION SR

Further information
Marianna Bom, Chief Financial Officer, Aalto University, tel: +358 50 575 3762
Eero Tuulos, Head of Treasury, Aalto University, tel: +358 50 374 8903

Important information

This release is for information purposes only and is not to be construed as an offer to purchase or sell or a solicitation of an offer to purchase or sell with respect to any securities of Aalto University Foundation. The distribution of this release and the related material concerning the issuance of the Notes may, in certain jurisdictions, be restricted by law. No actions have been taken to register or qualify the Notes, or otherwise to permit a public offering of the Notes, in any jurisdiction. Any offering material or documentation related to the Notes may be received only in compliance with applicable exemptions or restrictions. Persons into whose possession this release or any such offering material or documentation may come are required to inform themselves of and observe all such restrictions. This release and any such offering material or documentation may not be distributed or published in any country or jurisdiction if to do so would constitute a violation of the relevant laws of such jurisdiction or would require actions under the laws of a state or jurisdiction other than Finland or other jurisdiction in which it would not be permissible to offer the Notes and this release and any related material concerning the issuance of the Notes may not be sent to any person in those jurisdictions. The information contained herein shall not constitute an offer to sell or tender, or a solicitation of an offer to buy or sell any of Aalto University Foundation’s securities, including the Notes, to any person in any jurisdiction in which such offer, solicitation or sale or tender would be unlawful. None of Aalto University Foundation nor the Sole Lead Manager or their representatives accept any legal responsibility for any violation by any person, whether or not the persons contemplating investing in or divesting Aalto University Foundation’s securities, including the Notes, are aware of such restrictions.

The Notes have not been and will not be registered under the U.S. Securities Act, or under the securities laws of any state or other jurisdiction of the United States. The Notes may not be offered, sold, pledged or otherwise transferred directly or indirectly within the United States or to, or for the account or benefit of, U.S. Persons, except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the U.S. Securities Act.

MIFID II PRODUCT GOVERNANCE – ELIGIBLE COUNTERPARTIES AND PROFESSIONAL CLIENTS – The target market is eligible counterparties and professional clients (all distribution channels).

PROHIBITION OF SALES TO EEA AND UK RETAIL INVESTORS

The Notes are not intended to be offered, sold or otherwise made available to and should not be offered, sold or otherwise made available to any retail investor in the European Economic Area (the “EEA”). For these purposes, a retail investor means a person who is one (or more) of: (i) a retail client as defined in point (11) of Article 4(1) of MIFID II; (ii) a customer within the meaning of Directive (EU) 2016/97 (the “Insurance Distribution Directive”), where that customer would not qualify as a professional client as defined in point (10) of Article 4(1) of MIFID II; or (iii) not a qualified investor as defined in point (e) of Article 2 of Regulation (EU) 2017/1129 of the European Parliament and of the Council of 14 June 2017 (the “Prospectus Regulation”). Consequently, no key information document required by Regulation (EU) No 1286/2014 (the “PRIIPs Regulation”) for offering or selling the Notes or otherwise making them available to retail investors in the EEA has been prepared and therefore offering or selling the Notes or otherwise making them available to any retail investor in the EEA may be unlawful under the PRIIPs Regulation.

The Notes are not intended to be offered, sold or otherwise made available to and should not be offered, sold or otherwise made available to any retail investor in the United Kingdom (the “UK”). For these purposes, a retail investor means a person who is one (or more) of: (i) a retail client, as defined in point (8) of Article 2 of Regulation (EU) No 2017/565 as it forms part of domestic law by virtue of the European Union (Withdrawal) Act 2018 (“EUWA”); (ii) a customer within the meaning of the provisions of the Financial Services and Markets Act 2000 (the “FSMA”) and any rules or regulations made under the FSMA to implement the Insurance Distribution Directive, where that customer would not qualify as a professional client, as defined in point (8) of Article 2(1) of Regulation (EU) No 600/2014 as it forms part of domestic law by virtue of the EUWA; or (iii) not a qualified investor as defined in Article 2 of the Prospectus Regulation as it forms part of domestic law by virtue of the EUWA. Consequently, no key information document required by the PRIIPs Regulation as it forms part of domestic law by virtue of the EUWA (the “UK PRIIPs”), for offering or selling the Notes or otherwise making them available to retail investors in the UK has been prepared and therefore offering or selling the Notes or otherwise making them available to any retail investor in the UK may be unlawful under the UK PRIIPs Regulation.

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