Covivio successfully priced today a €500 million Green Bond, maturing in June 2032. Proving the bond investor’s appetite and their confidence in the Group’s credit profile, this issuance was close to 4 times oversubscribed.
The proceeds will be used to finance or refinance Eligible Green Portfolio as defined in the Sustainable Bond Framework, including the refinancing of outstanding Green Bonds.
The spread of the Bond issuance is 168 bps at 8.5 years for a coupon of 4.625%. The fixed rate of the issue will be largely swapped into floating rate, to take advantage of the Group’s strong hedging position (90% of debt hedged at end-2023; 5.8-year average hedging maturity). Pending the redemption of the Bond maturing in October 2024, Covivio will also benefit from very favourable cash investment conditions. This should enable to limit the impact on the average cost of debt, which is expected to remain below 2.5% by 2027 (based on current debt profile and market conditions).
This transaction further strengthens Covivio’s balance sheet by:
- (i) extending the debt maturity (4.7 years at end-June 2023);
- (ii) increasing the Group’s liquidity to €2.2 billion, covering debt expiries until end-2025;
- (iii) increasing the proportion of debt linked to ESG objectives (55%);
- (iv) maintaining a strong diversification of financing sources.
As a reminder, Standard & Poor’s confirmed in May 2023 Covivio’s rating at BBB+, stable outlook.
Application will be made for the notes to be admitted to trading on Euronext Paris. The definitive documentation relating to this bond issue will be available on the websites of the Autorité des Marchés Financiers and Covivio. Settlement and admission to trading on Euronext Paris of the notes should occur on 5 December 2023.
This press release and the information contained herein do not constitute an offer to sell or subscribe, nor a solicitation of an order to buy or subscribe the notes in any country, particularly in the United States. This press release and the information contained herein also do not constitute an offer to purchase nor a solicitation to sell the notes, nor an invitation to participate to the offer to purchase. distribution of this press release may be restricted in some countries and be subject to specific regulations and persons in possession of this press release should inform themselves about and comply with any applicable restrictions.