by Property Forum | Report

CPI Property Group published an update on the Group’s efforts to flatten debt maturities, reduce gross leverage and fortify operating position.


Green bond issue and tender offers

On 12 May 2020, CPIPG closed the successful issuance of €750 million 6-year senior unsecured green bonds. The new green bonds carry a fixed coupon of 2.75% and benefited from over €1.8 billion of investor demand from fund managers, central banks, insurance companies and banks.

On 16 May 2020, CPIPG completed tender offers through which the Group repurchased €222.8 million of bonds due in 2022, US$73.1 million of bonds due in 2023 and €456.7 million of bonds due in 2024, for a total notional amount of nearly €750 million. As a result of the tender offers, CPIPG has no individual senior unsecured bond maturity exceeding €387 million until 2026.

Ongoing debt repurchase activities

On 13 May 2020, CPIPG announced that the Group is considering the purchase of CHF bonds due in 2023 through open market purchases or private transactions.

The Group expects to announce details of CHF bond purchases soon and intends to continue selectively repurchasing bonds and other instruments as part of the Group’s effort to gradually reduce leverage and flatten the maturity profile.a