CTP, the largest industrial property developer in CEE, has raised €500 mln from its third green bond issue.
This latest achievement increases the total raised from green bonds to €1.55 bn since its inaugural issuance in September 2020.
Jan-Evert Post, head of funding & investor relations at CTP said: 'We are delighted with the response of bond investors to our recent green bond issuance.
'The ongoing demand for our green bonds has allowed us to reduce our cost of funding to 1.6%, compared to 2.2% before our first bond in September 2020.'
The latest issue was launched with a coupon of 0.75% and a six-year maturity. As with the first two issues, this third bond was also concluded under its green bond framework, furthering CTP’s sustainability commitment to only issue green bonds henceforth.
This third issuance means that CTP now has 3 varying maturities (of 2023, 2025 and 2027 respectively) outstanding.
Both Moody’s and S&P credit rating agencies reconfirmed CTP’s investment grade credit ratings of Baa3 (Stable) and BBB- (Stable) respectively. The issuance received strong interest from investors, attracting orders from over 150 institutional accounts.
The book was more than three times covered with total orders exceeding €1.7 bn. Final allocation was made primarily to European asset managers and insurers who bought 80% of the issue, with banks and other investors each taking 10%.
A substantial majority of the investors declared a strong preference for green bonds, CTP reported.
