AXA IM Alts has raised €500m via a green bond issue for its flagship European open-ended real estate fund.
The manager said the green bond issued for AXA CoRE Europe was 4.6 times oversubscribed, attracting a €2.3m order book from 167 European and international institutional investors.
AXA IM Alts said the bond is the first to be issued under a new €3bn euro medium-term note programme which the manager has created on behalf of AXA Core Europe to facilitate further issuances. The latest fundraise follows AXA CoRE Europe’s inaugural €500m green bond, which launched in June.
The majority of the proceeds from the latest fundraise will be used to refinance existing secured debt, with the balance invested in suitable assets from AXA CoRE Europe’s acquisition pipeline, the manager said.
Timothé Rauly, global head of fund management at AXA IM Alts, said: “This second green bond issuance on behalf of AXA CoRE Europe is a further endorsement of the quality of assets in the fund’s portfolio, as well as a clear testament to both our strong track record in ESG investing and the continued demand for green investment opportunities from institutions.
“This issuance extends the fund’s average debt maturity, further diversifies the sources of financing and, more importantly, significantly reduces the level of secured debt within the portfolio. It will facilitate the further growth of the fund and help us achieve our goal of delivering market-leading returns to our clients while pursuing investment strategies that affect positive change in society.”
AXA CoRE Europe, which was launched in 2016, recently passed €5bn in assets under management, the manager said.
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