News Article bond CEE CTP Europe financing green issue sustainability
by Property Forum | Investment

CTP successfully issued a debut green bond for €650 million on 1 October 2020. CTP’s inaugural green bonds became the largest debut issuance by a CEE real estate company.  The bonds received a strong reception from investors and were several times oversubscribed with a peak order book in excess of €2 billion.

“CTP was in the right place at the right time to be able to successfully execute its debut bond. Logistics properties have strong fundamentals at the moment, particularly in CEE which has some of the strongest economic fundamentals in Europe. We also have a long term commitment to sustainability as evidenced by the BREEAM certification of our entire portfolio. CTP’s robust credit fundamentals were very well appreciated by rating agencies and investors, allowing to successfully secure two investment-grade ratings from Moody’s and S&P and complete our debut green bond despite turbulent market conditions,” said Richard Wilkinson, CFO at CTP.

CTP chose to issue green bonds following its 2019 commitment to BREEAM certify its entire portfolio of logistics and industrial projects to BREEAM Very Good and above. The proceeds from the issue will be used to finance or refinance a portfolio of Eligible Green Assets as outlined in the CTP's Green Bond Framework as well as financing eligible projects going forward.

Morgan Stanley, who acted as the sole rating and green structuring advisor stated: “Strong momentum saw books covered within an hour of launch, with the book attracting orders from over 150 high-quality accounts. This is a highly successful debut issue for CTP. “

The issue achieved broad institutional distribution, selling primarily into asset managers (60%) with most of the demand coming from the UK (32%), DACH region (22%), BeNeLux (20%), with CEE investors accounting for 10% of the deal.

The Bond matures on 24 September 2025 and carries a fixed annual coupon at the rate of 2.125 percent.

Despite a volatile market backdrop and the ongoing COVID-19 crisis, CTP’s green bond issue garnered strong demand, allowing CTP to achieve attractive pricing and upsize the issue by €150 million from original guidance.  The issuance represents the largest and, with an order book of over €2 billion, one of the most oversubscribed EUR debut bonds by a CEE real estate company.  

CTP B.V. is one of Europe’s top 5 logistics property players and the largest full-service owner-developer of prime industrial and logistics property in the CEE region with a portfolio comprising of 100 premium business industrial parks in key logistics hubs of CEE with €5.5 billion GAV as of June 2020.