German housing provider LEG Immobilien has placed an inaugural unsecured, fixed-rate corporate bond with a nominal value of €500 mln.
The bond, maturing on 23 January 2024, will bear an annual coupon of 1.25%. In line with LEG’s corporate rating, Moody's Investors Service Limited has assigned a rating of Baa1 for the bond.
'With the issue of its first corporate bond, LEG further diversifies its funding sources and underscores the company’s ample access to all key financing markets,' says Eckhard Schultz, CFO of LEG Immobilien.
LEG said that the bond was four-times oversubscribed, after being offered to institutional investors over several days of a pan-European roadshow.
The net proceeds of the bond will mainly be used to refinance existing subsidised loans and bank loans, as well as for general corporate purposes.
LEG's average financing costs are expected to drop to less than 2.0% with the company’s average debt maturity remaining at a high level of around ten years.
HSBC and J.P. Morgan are acting as active bookrunners and BNP Paribas, Morgan Stanley and Société Générale as passive bookrunners on the transaction.
