A fund sponsored by CBRE Global Investors has priced its inaugural green Eurobond debt offering of senior unsecured notes raising €500 mln. The issuance marks the first ever issuance direct from a SICAV structure in the investment grade corporate bond market, as well as the first issuance executed directly from a fund-level entity.
The green bond has a maturity of seven years and a coupon of 0.5%. The re-offer spread was set at €mid-swap plus 95 basis points, which represents the tightest spread to mid-swap in the EUR market compared to any precedent debt IPO in the real estate fund space.
The order book reached more than €1.7 bn from over 100 orders and was oversubscribed by 3.4 times. Over 93% of the deal was allocated to high quality European ‘buy and hold’ accounts with the majority of the bond allocated to asset managers and insurance companies.
To align with CBRE Global Investors’ ESG ambitions and that of the Fund, the bond has been structured as a Green Bond. The fund will allocate 100% of the net proceeds from the issuance of each green instrument to green projects satisfying one or more of the eligible indicators and performance requirements.
‘We are delighted to have achieved such an excellent outcome for our first bond issuance in Europe,’ said Duco Mook, head of treasury & debt financing, CBRE Global Investors. ‘The majority of the investors that we engaged with have placed orders, which is testament to the strength of the fund’s credit and market backdrop.’
Goldman Sachs acted as global coordinator and sole bookrunner to CBRE Global Investors.
