CPI Property Group announced the successful issue of ten-year senior unsecured bonds and hybrid bonds with a total value of EUR 1 billion.
OCPIPG issued new senior unsecured bonds worth EUR 600 million with a maturity of ten years and a coupon of 1.5% and new undated subordinated (hybrid) bonds worth EUR 400 million with a coupon of 3.75%. Undated subordinated (hybrid) bonds, classified for accounting purposes as equity, can be repaid by CPI Property Group in 2028. Total investor demand for new bonds reached almost EUR 3 billion.
“The acquisition of one billion euros in one bond transaction is a new milestone for CPIPG. We are really grateful to the investors for their constant support, “said David Greenbaum, CFO of the group.
The proceeds from the bonds will be used to cover the general needs of the group and to repay previously issued senior unsecured and hybrid bonds in a total amount exceeding EUR 750 million. The CPIPG is duly proud of its repeatedly demonstrated ability to repay its liabilities early and intends to maintain a proactive approach to managing the maturity profile of its liabilities in the future.
The combination of the offer of new and redemption of previously issued bonds has a positive impact on the group’s credit indicators and provides it with the flexibility needed for further growth at a time when the world is gradually recovering from the covid-19 pandemic. As a result of the last transaction, only about 15 percent of the group’s total funding is due in the next three years and only 40% in the next five years.
