Market announcement

Title

Outcome of Subscription to Arco Vara AS Bonds

Message

On  Friday, September 19, 2025, the public offering of Arco Vara AS bonds ended.
The  offering was  carried out  on the  basis of  the prospectus approved by the
Estonian  Financial Supervision Authority  on September 8, 2025. As  part of the
offering,  Arco Vara AS offered, as  a base volume, 100,000 bonds "EUR 8.80 ARCO
VARA  BOND 25-2028" with a  nominal value of  EUR 100 per bond,  maturing on 24
September  2028 and  bearing  a  fixed  annual  interest  rate  of  8.8% payable
quarterly.  In the  event of  oversubscription, Arco  Vara AS  had the  right to
increase the offering volume up to 150,000 bonds.

In  total, 3,392 unique investors participated  in the subscription, subscribing
for  bonds in the amount of EUR 21.9 million. Thus, the base volume of the issue
of EUR 10 million was oversubscribed 2.2 times.

In  accordance with the prospectus, Arco Vara AS exercised the right to increase
the offering volume by 50,000 bonds, as a result of which the total issue volume
increased  to EUR  15 million. The  management board  of Arco  Vara AS, with the
approval  by the  supervisory board,  decided on  the allocation  of the offered
bonds at its discretion, based inter alia on the following principles:

   i. All subscription orders placed by the same subscriber were aggregated;
  ii. 3.9 million EUR were subscribed by the investors who, as of the end of the
      settlement day on September 9, 2025, were either shareholders or
      bondholders of Arco Vara AS. These investors were allocated 100% of the
      amount subscribed by them. Thus, 26% of all issued bonds were allocated to
      them;
 iii. To the investors who subscribed for the bonds in the amount of less than
      100,000 euros, at least 40% of the subscribed amount was allocated, but
      not less than 50 bonds (5,000 euros).
  iv. To the investors who subscribed for the bonds in the amount of at least
      100,000 euros, at least 53.9% of the subscribed amount was allocated.
   v. The number of bonds with decimal places was rounded up to the nearest
      whole number.

As  a  result  of  the  issuance,  Arco  Vara AS will issue 150,000 bonds with a
nominal value of EUR 100, an annual interest rate of 8.8% and a maturity date of
September  24, 2028, resulting in a total issuance volume of EUR 15 million. The
bonds  will  be  transferred  to  investors'  securities  accounts  on  or about
September  24, 2025, and trading on the Baltic Bond List of Nasdaq Tallinn Stock
Exchange is anticipated to commence on or about September 25, 2025.

    Comment by Tarmo Sild, Member of the Supervisory Board and major shareholder
    of Arco Vara AS:
    "We can say that the value offered to investors was formed by the bond
    terms, our reputation, Arco Vara's outlook, and the management's work in
    marketing the issue. The issue gave us valuable feedback on where we stand
    in the capital markets when raising money. Now our task is to prove that we
    can put the raised capital to work wisely and make money with money."

    Comment by Kristina Mustonen, Member of the Management Board and CEO of Arco
    Vara AS:
    "I would like to thank all investors for their trust and support. My sincere
    thanks also go to the entire Arco Vara team, whose efforts made this issue
    possible, as well as to our co-managers AS LHV PANK and Redgate Capital for
    their professional cooperation. The successful subscription of the bonds
    demonstrates that the market believes in our vision and in the team's
    ability to deliver it."

    Comment by Silver Kalmus, Debt Securities Area Manager of the offering co-
    manager AS LHV Pank:
    "It's great that Baltic fixed income investors have the opportunity to
    contribute to the development and reconstruction of the historic Lutheri
    Quarter, one of Tallinn's most significant upcoming urban projects. Arco
    Vara is carrying out this project with a strong financial position and a
    sound capital structure, which provides a solid foundation for its
    successful implementation."

    Comment by Valeria Kiisk, partner of the offering co-manager AS Redgate
    Capital:
    "Successful bond issue is an important milestone not only for Arco Vara AS
    but also in the context of the Baltic capital markets - this is so far the
    largest standalone issuance by a real estate developer. As an organiser, I
    am pleased that an issuer with a clear governance structure and outlook, and
    with a long history on the Tallinn Stock Exchange, has attracted
    considerable attention from both institutional and retail investors."



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

This  notice  is  an  advertisement  for  securities  within  the meaning of the
Regulation No 2017/1129/EU of 14 June 2017 of the European Parliament and of the
Council  of the European Parliament, and does not constitute an offer to sell or
invitation  to subscribe to bonds of Arco  Vara AS. The information contained in
this  notice is  not intended  to be  published, distributed, or transmitted, in
whole  or in  part, directly  or indirectly,  in any  other country or under any
circumstance  where  publication,  sharing,  or  transmission would be unlawful.
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.