Mercialys raises EUR 650m in first bond issue

French REIT Mercialy successfully issued its first bond this week by placing a seven-year facility with a coupon of 4.125%.

The operation, which is part of Mercialys' strategy to inject some 40% of leverage into its business, allowed the real estate arm of retail group Casino to raise EUR 650 mln, significantly exceeding the initial amount of EUR 500 mln.

'The initial amount was eight times oversubscribed,' the company said in a statement. CA-CIB, HSBC, Natixis, RBS and Société Générale acted as joint bookrunners.

Earlier this month Mercialys added some EUR 1.2 bn of corporate debt to its balance sheet for the first time since its founding in 2005. The operation involved a EUR 500 mln bank loan and a EUR 500 mln bridge to bond.