German housing group Deutsche Annington has raised €1.3 bn from the issue of its first unsecured fixed rate bonds, divided in two tranches of six and three years respectively.
German housing group Deutsche Annington has raised €1.3 bn from the issue of its first unsecured fixed rate bonds, divided in two tranches of six and three years respectively.
The €700 mln three-year bond has a coupon of 2.125% while the €600 mln six year bond carries a coupon of 3.125%.
The proceeds from the issuance will be used to reduce a €2.5 bn loan granted in June by banks JP Morgan and Morgan Stanley Bank International which in turn will be partially used to fund the repayment of its German Residential Asset Note Distributor (GRAND) CMBS vehicle.
'Following the successful IPO, we have taken the next important step of implementing our new financing strategy,' said Stefan Kirsten, CFO of Deutsche Annington. 'It is our goal to cover a significant portion of our future financing needs with further issuances of longer-term unsecured corporate bonds.'
Last week Deutsche Annington Immobilien raised nearly €575 mln in an Initial Public Offering on the Frankfurt stock exchange. The company said earlier this week that it would move forward the repayment of the GRAND CMBS to next week, instead of October.
GRAND was originally created in 2006 with the issue of €5.8 bn of notes. About €3.8 bn remains outstanding.
Deutsche Annington was established in 2001 and is the owner of 180,000 residential units across Germany.
