IPE RE Awards: Vesteda raises €500m via green bond, eyes further issue [updated]

Dutch property investor Vesteda has successfully issued a €500m green bond, with investors over-subscribing the amount close to seven times, according to Gertjan van der Baan, Vesteda’s CEO.

Speaking to IPE Real Assets at the IPE Real Estate Global Conference & Awards 2019 in Amsterdam, he said the green bond – which generated “gigantic interest” from investors – was aimed at improving its 30,000 residential rental properties as well as building new sustainable stock.

Van der Baan said Vesteda would now also look at the options of replacing short-term loans with a new green bond.

The CEO added that Vesteda was also considering issuing green bonds focused on social and governance aspects, but said that the criteria had yet to be fleshed out.

Vesteda – a privatised offshoot of Dutch civil service pension fund ABP, which is still one of its larger stakeholders – is the first Dutch property investor to issue green bonds.

PGGM, NN Group and Allianz Real Estate are also among its largest shareholders.

The €7.3bn property investor is the largest residential fund in the Netherlands and focuses purely on core residential real estate in the mid-market segment.

It said its loan-to-value debt financing was approximately 25%. The bond has an 8-year duration and a 1.5% interest.

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