Baker & McKenzie Diwok Hermann Petsche advised Bruneckerstraße Ost GmbH, a PEMA Group company, on the issue of a EUR 52.8 million secured corporate bond pursuant to the Austrian Curator Act. Erste Group Bank AG acted as lead manager and structurer of the bond issue. The secured bond issue was rated by Credit Reform with an "A +" rating.

The special feature of the secured bond is a common representative (trustee) appointed on the basis of the Austrian Curator Act representing the bondholders. The office, hotel and commercial property complex “headline,” located in the city centre of Innsbruck and planned by Henke Schreieck Architekten ZT GmbH, has been pledged in favor of the bondholders. Due to the first-ranking security for the bondholders' claims (repayment and interest payments), investors are offered substantial structural security.

Baker & McKenzie acted as transaction counsel for the issuance. This particularly included structuring the security documentation, drafting the information memorandum, coordinating with the common representative of the bondholders and obtaining the approval of the appointment of the common representative by the Regional Court of Innsbruck.

"Secured bonds with a common representative appointed pursuant to the Austrian Curator Act are currently very attractive investments in the Austrian market. They offer two significant advantages for investors: an attractive yield as well as first-ranking security for the bondholders' claims,” commented Christoph Moser, attorney at Baker & McKenzie, who led the transaction.

Founded by Markus Schafferer, the PEMA Group is specialized in developing real estate projects and supporting clients in project implementations. Since it was founded in 2005, PEMA  has continuously expanded. Today, the group consists of several companies in Austria, Germany and Italy.

Baker & McKenzie’s Vienna office regularly advises on equity and debt capital markets transactions. Recently, the Vienna team advised WEB Winendergie AG, a leading Austrian producer of renewable energy, in connection with its debt issuance program in October 2012. Further transactions include the debt issue program of voestalpine AG, the Lenzing Re-IPO and the capital increase and the secondary listing of the renowned restaurant and catering company DO & CO in Istanbul.