Arco Vara

Capital/Financing Update • Sep 9, 2025

Arco Vara AS public bond offering announcement

Arco Vara AS public bond offering announcement

Arco Vara AS hereby announces the public offering of its bonds. The offering
will be carried out on the basis of the prospectus approved by the Estonian
Financial Supervision Authority on 8 September 2025, which has been published on
the date of this announcement on the websites of Arco Vara and the Estonian
Financial Supervision Authority. The unsecured and unsubordinated bonds are
publicly offered only in Estonia.

Main terms of the offering

Issuer	Arco Vara AS
Security	EUR 8.80 ARCO VARA VÕLAKIRI 25-2028
Type of security	Unsecured and unsubordinated bond
ISIN	EE0000002244
	Public offering to retail and institutional investors in
	Estonia, targeted offering to institutional investors in
Type of offering	Latvia and Lithuania
	EUR 10 million, with the possibility to increase up to
Issue volume	EUR 15 million
Nominal value	EUR 100
Interest rate	8.8% per annum
	Quarterly (24 September, 24 December, 24 March, and 24
Interest payments	June)
	10 September 2025, 10:00 - 19 September 2025, 16:00
Subscription period	(Estonian time)
Value date	24 September 2025
Maturity date	24 September 2028
Admission to trading	Application to Nasdaq Tallinn Stock Exchange Baltic Bond
	List
First trading day	on or about 25 September 2025
	08.09.2025 by the Estonian Financial Supervision
Prospectus approved	Authority
	Equity ratio >=35% of total assets;
	Ownership in subsidiaries >=75%;
	Real estate may not be sold or disposed of below market
Covenants	value
Arrangers	Redgate Capital and LHV
Legal advisor	Law Firm WIDEN

The bonds are unsecured and unsubordinated. This means that any pledged assets
or other collateral do not secure the bonds, and the bondholders' claims are not
preferred over other obligations. The bondholders' claims rank pari passu with
all other unsecured and unsubordinated obligations of Arco Vara AS. In the event
that the issuer experiences financial difficulties, the bondholders' claims will
be satisfied on equal terms together with other creditors of the same ranking.

Offering timetable

                           |Beginning of the subscription period for the

10.09.2025 at 10.00	bonds
19.09.2025 at 16.00*	End of the subscription period for the bonds
	Disclosure of the allocation results of the
22.09.2025	bonds
24.09.2025 or around that date	Transfer of the bonds to investors' securities
	accounts
25.09.2025 or around that date	First trading day of the bonds on Nasdaq
	Tallinn Stock Exchange Baltic Bond List

*The custodian may set an earlier deadline for submitting subscription orders.

Submission of subscription orders
In order to subscribe for the bonds during the Offering, an investor must have a
securities account with a Nasdaq CSD SE Estonian branch (hereinafter Nasdaq CSD)
account operator. An investor wishing to subscribe for the bonds should contact
its securities account custodian and submit the subscription undertaking during
the offering period in the form indicated below. By submitting the subscription
undertaking, an investor authorises the custodian who operates the investor's
current account connected to its securities account to immediately block the
whole transaction amount on the investor's current account until the settlement
is completed or funds are released in accordance with the terms set out in the
prospectus.

Owner of the securities account:	Name of the investor
Securities account:	Number of the investor's securities
	account
Custodian:	Name of the investor's custodian
Security:	EUR 8.80 ARCO VARA VÕLAKIRI 25-2028
ISIN code:	EE0000002244
Amount of securities:	Amount of securities the investor
	wishes to subscribe
Price (per bond):	EUR 100
	The amount of securities the investor
Transaction amount:	wishes to subscribe multiplied by
	Price (per bond)
Counterparty:	Arco Vara AS
Securities account of the counterparty:	99113562556
Custodian of the counterparty:	AS LHV Pank
Value date:	24 September 2025
Type of settlement:	?delivery versus payment"

Availability of the prospectus and bond terms
The prospectus and the terms and conditions of the bonds have been published and
are available in electronic form on Arco Vara's website at
https://arcovara.com/en/for-investors/ and on the website of the Estonian
Financial Supervision Authority at https://www.fi.ee
(https://www.fi.ee?utm_source=chatgpt.com).

Investor event
In connection with the public bond offering, Arco Vara will host an autumn
investor event on 10 September 2025 in Lutheri Quarter, Tallinn, where real
estate market trends will be discussed, as well as an overview of Arco Vara's
operations and future plans will be presented. The event will also provide a
more detailed introduction to the bond terms, and participants will have the
opportunity to visit the Lutheri Quarter development project on site. The event
is free of charge and open to all interested parties. Registration for the
investor event is available here: https://forms.gle/FsHyWTocEQbiBVgX7

Before investing in Arco Vara AS bonds, please read the prospectus and bond
terms, and consult with an expert if necessary. This announcement is for
information purposes only. It should not be considered as an offer to sell or a
solicitation of an offer to buy bonds or an invitation to subscribe to bonds.
The bonds of Arco Vara AS will be publicly offered only in Estonia and the sale
or offer of the bonds shall not take place in any jurisdiction where such offer,
invitation or sale would be unlawful without the exception or qualification of
law.

Darja Bolshakova
CFO
Arco Vara AS
[email protected] (mailto:[email protected])