News Article ESG green green bond industrial investment issue logistics P3 sustainability
by Property Forum | Investment

P3 Group announced the issuance of its inaugural senior unsecured RegS dual-tranche green bonds across 4- and 7-year tenors, in an aggregate principal amount of €1 billion. The bonds, which will be traded on the Euro MTF Market and listed on the official list of the Luxembourg Stock Exchange, will bear a fixed coupon of 0.875% for the 4-year tenor, and 1.625% for the 7-year tenor, and are expected to be rated BBB by S&P, in line with the corporate rating.

The Bonds are issued in line with the company’s new green financing framework, supporting the company’s overall ESG strategy, which includes an ambition to reduce GHG emissions of the company’s operations and portfolio in line with globally recognized targets. The net proceeds will be used to finance or refinance, in whole or in part, new or existing green projects or assets, in line with the use of proceeds as laid out in the green financing framework. P3’s green financing framework received a second party opinion by Sustainalytics, confirming its alignment with the International Capital Market Association’s Green Bond Principles.

Frank Pörschke, CEO of P3 Logistic Parks, commented: “Logistics real estate continues to exhibit strong fundamentals with favourable long-term supply and demand trends due to the ongoing growth in e-commerce, as well as related supply chain optimizations. We are pleased by the strong level of demand for our first green bonds issuance from institutional investors, which illustrates the strength of our business model and the appeal of our high-quality, sustainable portfolio of logistics assets in attractive locations across continental Europe. Our focus remains on growing profitably, and sustainably, which is why we have launched our green financing framework at the end of 2021 to support the issuance of green bonds. Together with the support of our shareholder, GIC, we plan to continue our dynamic growth journey in the coming years, partly funded by possible repeat issuances in the bond market.”

Ben Helsing, P3 Logistic Parks Group Treasurer and Head of Debt Investor Relations, commented: “This strategic transaction increases our liquidity, diversifies our debt financing sources, and extends our average debt maturities. In order to ensure substantial and flexible liquidity for the Group, we signed a €750 million revolving credit facility with our banking group in December 2021. Logistics real estate continues to exhibit strong fundamentals with favourable long-term supply and demand trends. These factors, together with P3’s robust credit metrics and our strong shareholder, enabled us to receive a BBB credit rating from S&P with Stable outlook. With P3‘s recent financing transactions, we have created a strong capital market facing funding platform to access the bond markets to refinance future debt maturities and fund further growth of the portfolio at attractive terms.”

BNP Paribas, Deutsche Bank AG, HSBC, ING Bank, J.P. Morgan acted as active joint bookrunners, CA-CIB, SMBC Nikko, UniCredit as passive joint bookrunners with BNP Paribas and HSBC as joint green structuring agents. Rothschild & Co acted as independent financial advisor and White & Case acted as legal advisor on all financing transactions.