Central European shopping centre specialist Atrium European Real Estate announced on Tuesday that its inaugural green hybrid bond issue has been more than three times oversubscribed.
The €350 mln bond attracted strong demand with an orderbook of €1.2 bn and was placed with a broad range of European and international institutional debt investors, including those investors with a specific focus on ESG/sustainable investment portfolios.
The Notes carry a coupon of 3.625% until the first reset date and the issue price of the Notes is 98.197%. The Notes will be callable for the first time on 4 August 2026. The issue date is expected to be on or around 4 May 2021.
The proceeds will be used to finance Atrium’s green residential investment programme.
Following the issuance, the company’s Net LTV will be 27%, with the long-term target remaining unchanged at 40%.
‘Atrium’s successful first Hybrid green bond issuance, which was more than three times oversubscribed, is a thorough endorsement of our ongoing strategy to diversify into residential for rent in our key geographies of Poland and the Czech Republic, as well as to the appeal of our ongoing Green Financing Framework to investors,’ said Liad Barzilai, Chief Executive Officer of Atrium Group. ‘The strong demand and attractive pricing enabled us to increase the aggregated amount to €350 mln and the issuance will allow us to accelerate both our move into residential and our ESG strategy, whilst further strengthening the Company’s Investment Grade credentials following Moody’s rerating of Atrium to Baa3 stable last week.’
Goldman Sachs International and HSBC acted as global coordinators and Citigroup, Deutsche Bank, Goldman Sachs International, HSBC, ING and Raiffeisen Bank International acted as joint bookrunners on the transaction.
