CTP B.V. has issued a debut Green bond for €650 million at the beginning of October, making it the largest debut issuance by a CEE real estate company. The bonds received a strong reception from investors and were several times oversubscribed with a peak order book in excess of €2 billion.
Richard Wilkinson, CFO at CTP, said: “CTP was in the right place at the right time to be able to successfully execute its debut bond. Logistics properties have strong fundamentals at the moment, particularly in CEE which has some of the strongest economic fundamentals in Europe. We also have a long-term commitment to sustainability as evidenced by the BREEAM certification of our entire portfolio.” Wilkinson added that the company’s strong credit fundamentals allowed it to secure two investment grade ratings from Moody’s and S&P.
CTP chose to issue the green bonds following its 2019 commitment to BREEAM certify its entire portfolio of logistics and industrial projects to BREEAM Very Good and above. The proceeds from the issue will be used to finance or refinance a portfolio of eligible green assets. Morgan Stanley, who acted as the sole Rating and Green structuring advisor stated: “Strong momentum saw books covered within an hour of launch, with the book attracting orders from over 150 high quality accounts. This is a highly successful debut issue for CTP.“ The Bond matures on 24 September 2025 and carries a fixed annual coupon at the rate of 2.125 percent.
