Atrium European Real Estate Limited has priced a €300 million inaugural green bond offering due 5 September 2027 under its EMTN Programme. The New Green Notes are issued by Atrium Finance Issuer B.V. and are guaranteed by Atrium. An amount equal to the net proceeds of the offering will be allocated to finance or refinance eligible projects and assets.
The New Green Notes attracted strong demand with an orderbook amounting to €1.2 billion and were placed with a broad range of European and international institutional debt investors, including those investors with a specific focus on ESG/sustainable investment portfolios. The New Green Notes carry a coupon of 2.625% and the issue price of the New Green Notes is 98.167%
An amount equal to the net proceeds of the offering will be allocated to finance or refinance eligible projects and/or assets as defined in Atrium’s Green Financing Framework. Sustainalytics has provided a second party opinion on the Framework confirming its alignment with the ICMA Green Bond Principles and LMA Green Loan Principles. As a result of the new issue, Atrium will have enhanced liquidity and expects to be able to purchase certain euro-denominated bonds issued by the Company which are validly tendered and accepted for purchase in accordance with the tender offer launched by Atrium on 27 January 2021.
Atrium will apply for the New Green Notes to be listed on the official list of the Luxembourg Stock Exchange and admitted to trading on the Luxembourg Stock Exchange’s regulated market.
Ryan Lee, Chief Financial Officer of Atrium Group, commented: “This transaction represents Atrium’s first green bond issuance and we are very pleased with its successful execution. The notes were issued under the Company’s Green Financing Framework and support our strategy to continue to embed ESG within our operations as well as broaden the Company’s investor base and diversify our funding. The oversubscription of the transaction, and attractive pricing, illustrates the strong investor support for Atrium.”
The New Green Notes have been assigned a rating of Baa3 by Moody’s and BBB by Fitch, in line with Atrium’s corporate ratings.
Citigroup assisted Atrium with establishing the Green Financing Framework in February 2020. Citigroup and ING acted as green advisors on the New Green Notes. Citigroup, Deutsche Bank, HSBC, ING, Morgan Stanley, Raiffeisen Bank International acted as Bookrunners on the transaction.
