CPI Property Group announced the successful issue of ten-year senior unsecured bonds and hybrid bonds with a total value of €1 billion.
On 27 January 2021, CPIPG issued €600 million of new 10-year senior unsecured bonds with a coupon of 1.5% and €400 million of new undated subordinated notes callable in 2028. Total investor demand for the offerings was nearly €3 billion.
“Raising €1 billion through one bond transaction is a new milestone for CPIPG,” said David Greenbaum, CFO. “We are grateful for the consistent support of our bond investors.
The undated subordinated bonds carry a coupon of 3.75% and will be treated as equity for IFRS accounting purposes; the undated subordinated bonds will receive 50% equity credit from Moody’s and Standard & Poor’s.
Proceeds from the offerings will be used for general corporate purposes and to repay more than €750 million of senior unsecured and undated subordinated bonds which are callable or mature in 2022, 2023, and 2024. CPIPG is proud of the Group’s track record of early repayment and intends to remain proactive in managing our maturity profile.
The combination of new offerings and debt repurchases has a positive effect on the Group’s credit ratios and provides flexibility for growth as the world emerges from COVID. Following the transactions, only about 15% of the Group’s total financing is due or callable within the next three years and about 40% within the next five years.
