On Friday Orco announced issuance of convertible bonds for EUR 150m in order to partially finance its acquisitions and partially to refinance its current debt at lower cost. Orco issued 1,086,956 of convertible bonds for EUR 138 with 7 year maturity and 1% interest rate, coupon paid annually on June 1. Conversion ratio has been settled as 1 bond for 1 share and can be exercised after July 1, 2008. Issuance allows option for additional 15% of bonds, i.e. 163,043. We see the news slightly positive in the light of efforts to reduce its debt costs. We reiterate our Buy recommendation with fair value EUR 113.