CBRE Investment Management has successfully issued a €500m senior unsecured green bond under its Euro Medium Term Note (EMTN) programme, bringing the fund’s total bond issuance to €1bn.
The €500m notes have a five-year tenor and are rated A- by Fitch. The bond was priced at a spread of 107 basis points over mid-swaps, equating to an all-in coupon of 3.875%.
The transaction was executed in a single day and investor demand was strong, with the order book exceeding €2.5bn, more than five times oversubscribed at its peak.
Duco Mook, head of EMEA treasury, debt and finance at CBRE Investment Management, said: “This second bond issuance builds on the strong foundation established with our inaugural transaction last September and brings the fund’s total issuance to €1bn – an important milestone in the evolution of our capital structure.”
Jeroen de Grunt, fund manager at CBRE Investment Management, added: “The transaction was very well received by investors despite a more volatile market backdrop, reflecting continued demand for high-quality real estate credit and confidence in the fund’s strategy. The successful execution, including the level of oversubscription and spread compression achieved, underlines the strength of the platform and enables the fund to fully benefit from unsecured debt, enhancing flexibility, scalability and efficiency.”
The fund’s strategic banking partners ABN AMRO, BNP Paribas, Crédit Agricole CIB, HSBC and ING acted as joint active bookrunners on the transaction. Linklaters and Clifford Chance acted as legal advisers.
