(Boursier.com) — Covivio successfully placed 500 million euros of Green Bonds, maturing in June 2032. This issue was oversubscribed almost 4 times.
The proceeds of the issue are intended to finance or refinance the eligible ‘Green’ portfolio as defined under the ‘Sustainable Bond Framework’, including the refinancing of existing green bonds.
The issue’s spread stands at 168 bps at 8.5 years for a coupon of 4.625%. The issue will be widely varied in order to take advantage of the group’s very good coverage situation (90% debt covered at the end of 2023; 5.8 years average maturity of coverage).
Until the redemption of the issue maturing in October 2024, Covivio will also have very favorable investment conditions. This will limit the impact on the average cost of debt, which is expected to remain below 2.5% by 2027 (based on the current debt profile and current market conditions).
This operation reinforces the solidity of Covivio’s balance sheet:
– by extending the maturity of the debt (4.7 years at the end of June 2023);
– by strengthening the group’s liquidity, increased to €2.2 billion and thus making it possible to cover debt maturities until the end of 2025;
– by increasing the share of debt linked to ESG objectives (55%);
– by maintaining a strong diversification of financing sources.
These bonds will be the subject of a request for admission to trading on Euronext Paris. Settlement, delivery and admission to trading of the bonds on Euronext Paris should take place on December 5, 2023.
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