The owner-managed company PANDION AG, a leading project developer for high-quality residential and commercial projects in German A-cities, plans to extend the corporate bond 2021/2026 (ISIN: DE000A289YC5) as part of a comprehensive concept for the realignment of its financing structure. This also includes the financing agreement with a globally active financial investor with a volume of EUR 100 million, which was announced in mid-October and is subject to conditions precedent, as well as the extension of further financing. Another component of the concept is the sale of selected portfolio holdings to meet the increased financing requirements. The aim is to stabilise liquidity in the long term and to restore the maturity congruence between the repayments of financing and the sale of projects.
With regard to the Corporate Bond 2021/2026, PANDION proposes to the bondholders an extension of the bond by two and a half years until August 5, 2028, an increase in the coupon by 250 basis points to 8.00% p.a., starting with the next interest period on February 5, 2026, as well as semi-annual interest payments. This gives the company greater financial leeway and offers investors a correspondingly higher interest rate. In addition, PANDION proposes an early partial redemption of 10% of the total principal amount of the bond as of December 31, 2027. To increase transparency, the company is switching to quarterly financial reporting and offers a semi-annual investor conference call.
The Company is calling on bondholders to vote on the extension and increase of the coupon of the 2021/2026 bond in accordance with the terms and conditions of the bond in a vote without a meeting from 17 to 19 November 2025. The call for votes is available as of today on the website of PANDION AG with the necessary documents for the vote in the "Investor Relations" section and is expected to be published in the Federal Gazette on 29.10.2025. Creditors who take part in the vote will receive a remuneration of EU 10.00 per bond in the event that the necessary quorum is reached. Major bondholders have stated in preliminary talks that they support the proposed concept.
PANDION has commissioned a renowned consulting firm to check the plausibility of the company's planning as part of an expert report. The report concludes that the implementation of the measures enshrined in it will lead to sufficient liquidity and profitability for PANDION AG to service its financial liabilities by 2028. A summary of the opinion in the draft may be requested upon proof of ownership of the bond and the signing of an indemnification agreement. Details are available on the website in the "Investor Relations" section.
Reinhold Knodel, CEO and owner of PANDION AG, explains: "The high level of equity tied up in our projects and the market-related delayed project sales have led to an incongruence between repayment payments and cash inflows. The restructuring of our financing – including the EUR 100 million agreement with the financial investor, the adjustment of the bond terms and conditions and the sale of portfolio holdings – will create the necessary financial flexibility to put our intact business model back on a solid long-term footing. I, too, have taken on personal responsibility to support the financial restructuring. Our extensive project pipeline, the growing sales figures in the residential segment and the recent tenant successes in the commercial sector prove that we continue to be on the right course with our strategy and consistent focus on A-cities."
PANDION is currently recording a significant increase in sales volume in the residential segment; the conclusion of a forward deal with DWS Group further underlines the confidence of institutional investors. In the commercial segment, there has been a significant upturn in the rental market so far this year – a positive signal that also suggests increasing activity in the transaction market on the part of investors in the coming months. In 2025, PANDION has already successfully concluded lease agreements with renowned companies for the RISE, Pollux and Beat projects, including the largest commercial deal of the year with Siemens in Munich (33,000 m² GFA).
