Toivo Group Plc has terminated an unused financing agreement with the EIB
Toivo Group Plc, Company release, 9 July 2024 at 2:00 p.m.
Today, Toivo Group Plc ("Toivo") has terminated an unused financing agreement of EUR 60 million concluded with the European Investment Bank ("EIB") at the beginning of 2023, as it is unnecessary. The purpose of the agreement was to finance energy-efficient residential buildings in Toivo’s long-term ownership and to replace some of the current long-term financing arrangements, but, due to a change in Toivo’s strategy, no reason was found for continuing the agreement. In addition, the agreement involved certain special conditions linked to financial key indicators as well as collateral arrangements that are currently not met, which means that the financing cannot be utilised without renegotiating the terms and conditions.
Toivo’s CEO Markus Myllymäki says: "The EIB agreement was negotiated and signed in different market conditions and to meet the needs of a different strategy. We would like to thank the EIB for the agreement and smooth cooperation. The termination of the agreement will not affect the financing of Toivo’s ongoing or planned projects, rather, we will use the most suitable form of financing and financing partner for each new project."
Toivo Group Plc
Further information
Markus Myllymäki
CEO
Toivo Group Plc
Tel. +358 (0)40 847 6206
Certified Adviser: Nordic Certified Advisor
About Toivo
Toivo is a Finnish real estate company that was founded in 2015. Its business consists of project development and long-term ownership of apartments. The Company’s business model is unique as Toivo’s business combines the value chain of the real estate business, from development and construction to ownership, management and rental of a completed property. Toivo manages the entire life cycle of properties with its own team, from raw land development to tenancy agreement negotiations and property maintenance. This ensures that Toivo is able to generate additional value for its customers, shareholders and stakeholders.
Toivo’s strategy is to develop properties in accordance with the Toivo concept. The properties aim for a strong development margin and a stable and attractive return, which enable long-term ownership and the generation of higher additional value for Toivo’s customers. Toivo has a knowledgeable and experienced team of experts with strong merits in the real estate business. The members of Toivo’s team have been involved in the development and construction of over 17,000 apartments, and they have an average of ten years of experience in the real estate business.
Toivo’s revenue in 2023 was EUR 43.7 million and its operating profit was EUR -0.3 million.