CA Immo has raised €500m in its Eurobond market debut with a fixed-rate senior unsecured bond that will mature in 7 years. The annual coupon is being reported at 0.875 percent, with the security to be traded on the Vienna Stock Exchange. Moody’s attached a Baa2 investment grade rating to the new issuance. The company said it would use the funds for financing and refinancing of future acquisitions and ongoing development projects. It also intends to optimize its debt structure. This includes an invitation to holders of some of its outstanding bonds due for redemption over the next three years against cash payment. J.P. Morgan acted as Sole Global Coordinator, and Erste Group, J.P. Morgan and Morgan Stanley as Joint Bookrunners.
Andreas Schillhofer, CFO of CA Immo said the transaction was an important milestone for the company. “While CA Immo’s funding becomes more diversified, average cost of debt will be further reduced and average maturity of financial liabilities extended. The pool of unencumbered property assets is expected to increase further, adding to the stable and robust nature of the company’s balance sheet.”
