CA Immo has tapped the Eurobond market for the first time and successfully placed a €500 million fixed rate senior unsecured benchmark bond with a 7-year maturity and an annual coupon of 0.875% on 28 January 2020. The bond will trade on the Official Market of the Vienna Stock Exchange. The international rating agency Moody’s Investors Service Ltd. has assigned an investment grade rating of Baa2 to the bond.
The company intends to use the net proceeds in particular for the financing and refinancing of properties including future acquisitions as well as development projects and the optimization of its debt structure including the funding of the tender offer described below, as well as other general corporate purposes.
J.P. Morgan acted as Sole Global Coordinator, and Erste Group, J.P. Morgan and Morgan Stanley as Joint Bookrunners.
Andreas Schillhofer, CFO of CA Immo: “This transaction represents a key milestone in executing the company's growth strategy and will further drive the optimization of our capital structure. While CA Immo's funding becomes more diversified, average cost of debt will be further reduced and average maturity of financial liabilities extended. The pool of unencumbered property assets is expected to increase further, adding to the stable and robust nature of the company's balance sheet.”
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