CPI PROPERTY GROUP Announces Successful €500 Million Green Bond Issuance

CPI PROPERTY GROUP, a prominent European real estate holder, has completed a significant issuance of €500 million in green bonds. The offering garnered more than €3 billion in orders, making this the most substantial demand the group has seen for any of its bond issues. With the order book being six times oversubscribed, CPIPG was able to notably lower the cost from the initial guidance to the final pricing, setting the coupon at 7%.

Despite the higher cost compared to the historical debt levels of CPIPG, the issuance was pursued to enhance liquidity and underline the market accessibility which supports the company's credit ratings and overall capital structure. CEO David Greenbaum expressed appreciation for the investor support, emphasizing the company's commitment to its stakeholders. The bonds will be directed towards retiring bridge loans from recent property acquisitions, linking the use explicitly to green-certified buildings within their portfolio.

The newly issued green bonds are listed on Euronext Dublin and eligible for clearing via Euroclear and Clearstream, Luxembourg. CPI PROPERTY GROUP has ensured the bonds meet the criteria for green bonds under its sustainability finance framework, which aligns with the acquisitions of IMMOFINANZ and S IMMO, known for their numerous green-certified buildings.