Sato Corporation, the Helsinki-based real estate investment manager, and Finnish bank OP Corporate Bank have agreed an unsecured bilateral loan of €100 million. The two parties agreed the seven-year loan on Monday.
Sato said the facility highlighted its recent attempt to adjust its financial structure towards the use of more unsecured debt. The firm’s unsecured assets ratio, as of March 31, 2017, was 56.3 percent – a figure it said it was hoping to increase.
“This bank loan is consistent with the main terms of unsecured bonds issued to us and therefore is in line with the direction chosen by us,” said Sato president and chief executive officer Saku Sipola.
“OP has understood our strategic aim very well, and this financing agreement is part of a continuous process where loan agreements have previously been made with Aktia Bank and the European Investment Bank (EIB),” added Sipola.
Sipola also said Sato had recently diversified its financing structure and improved its liquidity position. An important step towards this, he said, was the €400 million unsecured syndicated credit facility signed in June last year with several commercial banks. In another recent deal, Sato obtained an unsecured loan of €150 million in late 2016 from the EIB.
Sato is one of Finland’s largest housing investment companies with around €3.4 billion in assets under management. The majority of these assets are rental properties in Finland and Russia.