Nordic retail property specialist Citycon has announced the placing of a €300 mln green bond with a five year maturity.
The senior unsecured fixed rate EUR-denominated Bond matures on 6 March 2029 and pays a fixed coupon of 6.500%.
Citycon said in a statement that the 'demand for the bond was extremely strong with an orderbook approximately seven times over-subscribed'.
The net proceeds from the bond will be used to refinance existing debt and for general corporate purposes of the Group that meet Citycon’s green financing framework requirements.
Citycon’s green financing framework reflects practices that support the transition to a sustainable and low carbon economy through the development of green assets. Proceeds allocated in accordance with the framework will be used to finance or re-finance eligible green assets in categories green buildings, energy efficiency, renewable energy or waste management.
'This once again highlights the quality of our credit and our access to the capital market. As a result of this successful issuance, our debt maturity profile is significantly improved and refinancing risk is further reduced as we aim to use the net proceeds to partially pay back the bond maturing in 2024 and pay down other short-term debt,' said Sakari Järvelä, Chief Financial Officer of Citycon.
Danske Bank and Deutsche Bank acted as Global Coordinators, and Nordea Bank, OP Corporate Bank, SEB and Swedbank acted as active bookrunners.
