Aroundtown Successfully Issues Benchmark Bond, Launches Tender to Buyback Shorter-Term Bonds

Aroundtown SA has announced the successful issuance of a 5-year €650 million unsecured bond. This marks the first senior unsecured bond issuance by the company in over two years. The new bond, anticipated to mature in Q3 2029, has a coupon rate of 4.8%. The issuance was highly successful, receiving approximately €4.5 billion in demand, making it seven times oversubscribed. The bond is expected to be rated BBB+ by S&P.

Concurrently, Aroundtown has initiated a tender process to buy back shorter-term bonds, aiming to proactively manage its debt profile. The liability management exercise, launched on July 8th, targets over €1.8 billion of bonds with near-term maturities. This strategic move is aimed at extending the company’s debt maturity profile and supporting its deleveraging efforts.

Aroundtown’s subsidiary, Grand City Properties S.A., also recently had a successful bond issuance, adding to the Group's diverse funding sources. Together, the group has issued €1.15 billion in bonds, reflecting robust investor interest and bolstering their proactive liability management strategy.