News Article bond CPI Czech Republic financing green investment issue
by Property Forum | Investment

CPI Property Group announced the completion of two issuances under the Group’s €5 billion Medium-Term Note Programme.

The first transaction issued on 22 January 2020 consisted of £350 million (more than €400 million) of 8-year senior green bonds due 22 January 2028. The green bonds carry a coupon of 2.75% in GBP, and were fully swapped by CPIPG into EUR for a fixed rate of less than 2%. Investor demand for the GBP bonds was extremely strong, reaching £2.6 billion. The bonds are listed on the Main Market of the Irish Stock Exchange plc (trading as Euronext Dublin).

“CPIPG is proud to be the first company from our region to issue a GBP-denominated green bond, following our successful EUR green bond issuance in 2019” said Martin Nemecek, CEO of CPIPG. “Issuing in green format is one important way for CPIPG to demonstrate our overall corporate focus on ESG matters.”

The second transaction issued on 23 January 2020 consisted of SGD 150 million (about €100 million) of perpetual subordinated bonds which are callable beginning in 2025. The SGD perpetual bonds carry a coupon of 5.8% in SGD, and were fully swapped by CPIPG into EUR at a fixed rate of about 4%.

“CPIPG is proud to be the first European corporate issuer to complete a hybrid bond transaction in Singapore Dollars,” said David Greenbaum, CFO of CPIPG. “CPIPG is focused on maintaining a conservative capital structure, and the ability to access hybrid bond markets around the world is a big strategic advantage.”