Some €1.5 bn of convertible bonds were issued in the first half of 2014, twice the number over the same period last year, with around 60% of those being issued by property firms.
Some €1.5 bn of convertible bonds were issued in the first half of 2014, twice the number over the same period last year, with around 60% of those being issued by property firms.
'In view of current low interest rates, they represent an attractive financing tool', said Ralf Darpe of Société Générale, which calculated the figures.
'Property companies profit from the attractive conditions, due to the financing costs with long maturity and without collateralisation,' he said. 'On average, in recent months investors have granted listed property companies coupons ranging between 0.5% to 2%.'
Average terms were typically five to seven years, he said.
Europe's largest listed property company Unibail-Rodamco has tapped the capital markets twice this year already. It announced this week that it had raised €500 mln from a convertible bond issue after raising €600 mln in May.
