Icade issues €500m bond at 1.87% coupon

French listed property giant Icade has announced the placing of a €500 mln seven-year bond with a coupon rate of 1.875%.

The financing has been raised with a 125 basis points spread over the reference rate and the issue was substantially oversubscribed, Icade said in a statement.

'The order book reveals a diversification of the investor base across Europe, with orders from central banks and sovereign funds,' the French REIT said.

The bond improves Icade's average cost of debt and extends the average maturity while helping refinance the acquisition by Icade Santé, subsidiary of Icade, of a clinics portfolio owned by the group Vitalia.

'The success of this new bond issue shows Icade’s ability to issue financing at very attractive conditions and to improve significantly the cash-flows from its future Investments,' commented CEO Olivier Wigniolle.

BNP Paribas, Crédit Agricole CIB, HSBC, Natixis et Société Générale CIB were joint book runners.