German listed office landlord Alstria Office REIT has announced the placing of a euro denominated, unsecured promissory note with a total volume of €150 mln.
The facility has a maturity of between 4 and 10 years (average maturity 7.1 years) and an average coupon of 2.07% per annum. Alstria said that the offer was substantially oversubscribed and was placed with 47 German and international financial institutions.
The proceeds from the new debt instrument will be used to refinance existing secured bank debt, it added.
'With this transaction Alstria is one of the few real estate companies to issue an unsecured "Schuldscheindarlehen", opening this market also to real estate operators and further diversifying its sources of financing,' the company said.
The total size of Germany's ‘Schuldschein’ issuance market amounted to €20 bn in 2015, making it a liquid debt market widely used by German corporates. Investors in this space are mainly savings and loans banks in Germany, insurers, pension funds as well as international banks.
BNP Paribas and Landesbank Hessen-Thüringen acted as joint lead managers on the transaction.
