The issue was preceded in October this year by the first set with a revenue of 650 million euros. In line with its strong focus on sustainability and the goal of achieving operational carbon neutrality by the end of 2021, the company will use the funds raised from both issues to finance its green building portfolio.
The second set of green bonds worth 400 million euros (approximately 10.6 billion CZK) was issued by CTP at the end of November. The bonds have a three-year maturity and a fixed annual coupon of 0.625 percent. They were again very well received by the investors. Demand was many times higher than supply, at the peak of over one billion euros. The initial issue of CTP green bonds on October 1, 2020 in the amount of 650 million euros (approximately 17.2 billion CZK according to the current exchange rate) became the largest debut of a development company in the region of Central and Eastern Europe. CTP opted for green bonds after committing in 2019 to certify its complete portfolio of logistics and industrial projects at the BREEAM Very Good level or higher.
"Our second issue of green bonds was successful because CTP was in the right place again at the right time. CTP is in good credit form, as evidenced by our results for the third quarter of 2020. This has enabled us to successfully mobilize the demand of existing and new institutional investors. Given our strategy of shifting debt financing to largely unsecured debt, we saw it as a good opportunity to issue a three-year bond. This brings up a new data point on our yield curve, while maintaining the consolidated maturity of our debt profile, as we will use part of the proceeds from the issue to prepay bank debt with shorter maturities. I am especially pleased with the fixed annual coupon of 0.625 percent with a three-year maturity. Logistics real estate continues to stand firm, especially in the CEE region, which has some of the most robust economic fundamentals in Europe,” said Richard Wilkinson, CTP's Chief Financial Officer.
Source:// Hospodářské noviny