CPIPG has announced the closing of €500 million of 5-year senior unsecured green bonds. More than €3 billion of orders have been placed for the green bonds, the strongest-ever response to a bond issue by CPIPG.
With a six times oversubscribed order book, CPIPG reduced the cost from initial guidance to pricing. The coupon was set at 7%, which is higher than CPIPG’s historic cost of debt. CPIPG proceeded with the green bonds to bolster liquidity and demonstrate market access to support the Group’s credit ratings and capital structure.
Barclays, Goldman Sachs, Santander, Société Générale, Erste Group, SMBC, Raiffeisen Bank International and UniCredit acted as joint bookrunners on the transaction.
CPIPG will allocate an amount equivalent to the net proceeds to fully retire the bridge loans related to the acquisitions of IMMOFINANZ and S IMMO. This application of proceeds meets the eligibility criteria for green bonds under CPIPG’s sustainability finance framework. In particular, both IMMOFINANZ and S IMMO have many green-certified buildings which are now part of the Group.
The green bonds are listed on the Main Market of the Irish Stock Exchange plc (trading as Euronext Dublin) and are accepted for clearance through Euroclear and Clearstream, Luxembourg. The green bonds, issued under the company’s Euro Medium-Term Note Programme, are rated Baa3 by Moody’s and BBB- by Standard & Poor’s.
