Rapala VMC Corp. is issuing a hybrid bond on May 31, 2017 to raise €25 million, granting holders a fixed annual interest rate of 5.375 percent until May 31, 2019. The hybrid bond has no maturity rate but Rapala can redeem it after two years. The transaction, which has already been oversubscribed multiple times, will strengthen the Finnish company's capital structure and financial position, providing capital needed for the implementation of its strategy. A hybrid bond is subordinated to the other debt obligations of the issuer and is treated as equity, but it doesn't confer shareholders' rights to the holders and doesn't dilute the holdings of the ordinary shareholders. OP Corporate Bank will act as the sole lead manager for the transaction. Hannes Snellman Attorneys served as legal adviser to Rapala.