Finnish listed retail specialist Citycon has placed a Euro denominated guaranteed bond in an amount of €350 mln and with a 10-year maturity.
Finnish listed retail specialist Citycon has placed a Euro denominated guaranteed bond in an amount of €350 mln and with a 10-year maturity.
The bond, which matures in 2024, was offered mainly to European, including Nordic, institutional investors through a book building procedure. It carries a fixed annual interest rate of 2.5%.
The proceeds would be used to prepay existing debt in order to extend average debt maturities and for general corporate purposes, the company said in a statement. Citycon may also use the proceeds of the bond for the development of existing properties, to acquire new properties or to increase its shareholdings in its existing joint ventures.
'This transaction was oversubscribed and closed within a few hours,' said Citycon's Executive Vice President and CFO Eero Sihvonen. 'The success of this offering further demonstrates the strength of our credit profile. This strategic 10-year Eurobond extends our average debt maturities and reduces our cost of debt.'
Citycon Group has mandated Deutsche Bank and Goldman Sachs International as global coordinators and lead managers together with Danske Bank and Swedbank as lead managers.
