CTP’s bond issue raises €1bn for pipeline and debt reduction

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CTP the Amsterdam-based specialist in central European logistics property has raised €1 billion by issuing a Green Bond and plans to use the proceeds to fund next year’s development pipeline and to reduce the cost of debt .

The bond was structured in two tranches, a €500 million five-year tranche, the other a €500 million ten-year tranche. The firm said that total demand for the issue was around €3.5 billion and the tender offer “well exceeded the targeted amount

The five-year tranche’s annual coupon was fixed at 0.625%, while the ten-year tranche annual coupon was fixed at 1.50%.

CTP’s chief finance officer Richard Wilkinson commented: “In our third visit to the bond market in 2021, CTP was able to successfully execute another dual tranche issuance. Once more we were able to attract significant demand from both existing and new institutional investors, with over 100 investors participating.”

Asset managers bought 66% of the €1 billion issued with the greatest demand from the UK/Ireland (52%), Benelux (15%), the DACH region (14%) and France (7%).

CTP elected to issue green bonds exclusively in light of its 2019 commitment to certify its entire portfolio of logistics and industrial projects to BREEAM Very Good standard and above.

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