German listed residential property owner Deutsche Wohnen has announced plans to issue €800 mln of convertible bonds.
Due in 2026, the bonds will offer a conversion premium of 40% to 45% above the reference share price and a coupon of 0.10% to 0.60%.
The company will use the proceeds partly to repurchase €400 mln of convertible bonds due in 2021.
Unsecured corporate bonds are proving an attractive financing strategy as fixed income investors seek exposure to higher yielding assets. Also this week, Austrian listed property firm CA Immobilien Anlagen announced plans to issue a senior, unsecured bond with a total size of €200 mln. The CEE-focused property investor said it intends to use the net proceeds of the issue to optimise its financing structure including the early repayment of bank loans in CEE as well as for other general corporate purposes.
The convertible bonds will have a maturity of 7.5 years and will offer a coupon of between 0.50% - 1.00% per annum. They will be issued at 100% of their nominal value of €100,000 and will be redeemed, if not previously converted, at 100% of the nominal value.
The conversion price is expected to be set at a conversion premium between 25% and 30% above the volume weighted average price of the CA Immo shares on the Vienna stock exchange on the launch date, forecast for October 4, 2017.
Last week, CPI Property Group announced plans to issue a senior unsecured bond with a medium-term maturity and a total size of €1.25 bn.
CPI, a CEE-focused investment and development company majority owned by Czech billionaire Radovan Vitek, has mandated Deutsche Bank, SG CIB and UniCredit to act as joint global coordinators and joint bookrunners, and UBS Investment Bank as joint bookrunner to arrange a series of fixed income investor meetings in Continental Europe and the UK commencing this week.
