Industrial developer VGP has placed its fourth green bond for €600 million, paying a 4% annual coupon and maturing on 16 January 2032.
The transaction attracted demand from the outset, with the order book exceeding €3 billion at final terms. Despite a 35 basis point tightening and a €100 million upsizing, investor appetite remained strong, driving an additional €500 million in incremental orders. The final order book reached €3.5 billion, representing an oversubscription of 7 times the initial target size of €500 million.
The net proceeds will be used to finance and refinance a portfolio of assets in accordance with the VGP Sustainable Finance Framework. VGP announced yesterday the launch of a capped tender offer for its outstanding €500 million 1.625% fixed rate green bonds due 17 January 2027, of which €320.1 million remained outstanding at the time of launch.
The banks acting as joint global coordinators are Belfius Bank, J.P. Morgan and KBC Bank. Together with the joint global coordinators, BNP Paribas and ING Bank Belgian Branch are acting as joint active bookrunners.
