German listed property giant Vonovia has announced it is launching a capital hike to raise €1 bn of fresh equity to take advantage of ‘growth opportunities’ arising in the current market environment.
The operation, which will be carried out via an accelerated bookbuilding process, will also be used to repay upcoming debt maturities in the fourth quarter of 2020.
‘We feel this is an excellent opportunity,’ said CFO Helene von Roeder. ‘After our attractive €1.5 bn corporate bond issuance a few weeks ago, we once again act from a position of strength. We are clearly showing that we can deliver growth even in these times and with further opportunities down the road we are highly confident that we will continue to create value for our stakeholders.’
The new shares will be offered for purchase exclusively to institutional investors in a private placement.
Vonovia said it has emerged unscathed from the Covid-19 crisis, with the company retaining its full-year guidance for the year 2020. ‘The impacts from Covid-19 on the business remain immaterial, reflecting our low risk profile,’ the firm said in a statement.
