Novinky.cz reports that CPI Property Grouphas sold CZK 2.2bn worth of bonds in Japan, making it the first European real estate market to emit such securities on that market. “The transaction represents an historic milestone not just for our group but for the Japanese bond market,” said director Martin Němeček. “We’re also the first foreign real estate company that’s received an investment rating from the top Japanese rating agency Japan Credit Rating Agency (JCR).” The offering has two parts: 8 billion jen with a 1.414 percent interest rate that’s due for redemption in 2021 and another 3 million jen tranche (1.995 percent) that’s due in December 2028. “The Japanese market will contribute to the diversification of financing sources for our group,” said CPI’s CFO David Greenbaum. The company plans to pay off bank loans with money made from the sale of the bonds after converting them into euro.
