Keystone International is to place a triple collateralised mortgage bond with a term of seven-year and a coupon of 5.25% per annum.

The bond, worth EUR 50 mln, is being issued by its subsidiary K-Bond 1 and will be marketed in the German, Austrian, Liechtenstein and Luxembourg capital markets. It has received a BBB-rating from credit agency Euler Hermes Rating.

Distribution is due to start on September 30, with the final subscription date slated for end-November.

The mortgage bond K-Bond 1 is securitised against existing light industrial real estates with stable and secure rental income. The real estate portfolio was acquired back in 2006 and offers opportunities to grow rental income by up to 10%, the company said.

'In contrast to comparable capital market products, the investors subscribing for K-Bond 1 do not invest into a black box,' said Frank Rückersberg, founding shareholder of Keystone International and director of K-Bond 1. 'The real estate, the cash flows and the lease documents are certain.'

The issuance proceeds will be used to fund the development of new projects.