European open-air shopping centre operator Frey has secured €150 mln in financing to diversify funding sources, extend debt maturity, and pursue its growth strategy.
A €100 mln, 10-year fixed-rate corporate loan was arranged by Natixis and fully subscribed by a UK insurer, while a €50 mln, 7-year mortgage on the Matarnia Park Handlowy shopping center in Gdansk, Poland, was secured through BNP Paribas Bank Polska. The financing leverages current favorable interest rates.
These financing agreements extend Frey's average debt maturity from 4.6 years (30 June 2024) to 9 years, lowering its average borrowing costs due to favorable interest rates (the lowest 10-year swap rate since summer 2022). The deals also significantly increase Frey's liquidity, which was €300.6 mln on 30 June 2024.
The loans fully comply with Frey's ESG policy, maintaining its 100% ESG-linked bank financing. They include requirements related to environmental certifications, mobility, and greenhouse gas emissions, and their terms align with Frey's other financing arrangements.
