CBRE Investment Management has priced its third Green Eurobond debt offering of senior unsecured notes raising €750 mln.
The issuance marks the return of the CBRE IM fund to the public debt market for the first time since 2021 as well as represents the fund’s inaugural issuance of its €3 bn Euro Medium Term Note (EMTN) Programme.
The Green bond has a maturity of 10 years, a coupon of 4.75%, and is rated BBB+ by S&P. The re-offer spread was set at €mid-swap plus 205 basis points, which implies a zero new issue premium to comparable sector comps.
The order book reached more than €2.4 bn at peak from over 120+ investor orders and was oversubscribed by 3.0x at final terms. Over 95% of the deal was allocated to high-quality Tier 1 European ‘buy and hold’ real money accounts with the majority of the bond allocated to asset managers, bank treasuries, pension funds and insurance companies.
The fund will allocate 100% of the net proceeds from the issuance of each Green instrument (loan or bond or any other financing instrument) to green projects satisfying one or more of the eligible indicators and performance requirements.
Mark Pennington, fund Chief Financial Officer, CBRE IM commented: 'We have seen a significant improvement of the bond markets since October last year, and that strong demand for real estate paper has continued in 2024. This bond issuance marks the first diversified core fund to tap the market again since April 2022.'
He added: 'The fund is set up to benefit from a wide variety of debt sources, but we clearly prefer the public bond market because of its ticket size and ease of use. Especially now that we have an EMTN Programme, there is a lot of flexibility to pick the best issuance window to do another capital markets funding round.'
ABN AMRO, CACIB, Deutsche Bank, Goldman Sachs and ING acted as Joint Active Bookrunners to CBRE IM. Linklaters advised CBRE IM. The Joint Active Bookrunners were advised by Clifford Chance.
