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News

CTP Green Bonds Largest Inaugural Issue in CEE Real Estate

7.10.2020
Company: CTP Invest, spol. s r.o.

  • CTP Successfully Issues its debut bond as a Green Bond for €650m
  • CTP B.V. Bonds rated Baa3 (Stable) by Moody’s and BBB- (Stable) by S&P

CTP B.V., (ticker CTPBVV), one of Europe’s top 5 logistics property companies and the largest logistics property owner-developer in CEE, successfully issued a debut Green bond for EUR650m on 1 October 2020. CTP’s inaugural Green bonds became 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 EUR 2 Bn.

CTP has a highly successful business model and operates 100 parks across Central Europe serving over 500 tenants with market leading positions in multiple CEE countries.  CTP also has a strong commitment to sustainability and targets carbon neutral operations by 2023.

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. CTP’s robust credit fundamentals were very well appreciated by rating agencies and investors, allowing to successfully secure two investment grade ratings from Moody’s and S&P and complete our debut green bond despite turbulent market conditions.“

CTP chose to issue 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 as outlined in the CTP’s Green Bond Framework as well as financing eligible projects going forward.

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 issue achieved broad institutional distribution, selling primarily into asset managers (60%) with most of the demand coming from the UK (32%), DACH region (22%), BeNeLux (20%), with CEE investors accounting for 10% of the deal.

Jan Evert Post, Head of Investor Relations at CTP said: “We are very pleased by the depth and breadth of support for this inaugural CTP issuance. The issuance of the Notes will allow CTP to finance itself both at a lower cost and more efficiently.”

Despite a volatile market backdrop and the ongoing Covid19 crisis, CTP’s green bond issue garnered strong demand, allowing CTP to achieve attractive pricing and upsize the issue by EUR150 million from original guidance.  The issuance represents the largest and, with an order book of over €2Bn, one of the most oversubscribed EUR debut bonds by a CEE real estate company.

CTP B.V. is one of Europe’s top 5 logistics property players, and the largest full-service owner-developer of prime industrial and logistics property in the CEE region with a portfolio comprising of 100 premium business industrial parks in key logistics hubs of CEE with €5.5 billion GAV as of June 2020.

The Bond matures on 24 September 2025 and carries a fixed annual coupon at the rate of 2.125 percent.

The securities referred to herein may not be sold in the United States absent registration or an exemption from registration under the U.S. Securities Act of 1933, as amended. 

This communication does not constitute an offer of the Securities to the public in the United Kingdom.  No prospectus has been or will be approved in the United Kingdom in respect of the Securities.  This communication is being distributed to and is directed only at (i) persons who are outside the United Kingdom or (ii) persons who are investment professionals within the meaning of Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (the “Order”) and (iii) high net worth entities, and other persons to whom it may lawfully be communicated, falling within Article 49(2)(a) to (d) of the Order (all such persons together being referred to as “Relevant Persons”).  Any investment activity to which this communication relates will only be available to and will only be engaged with, Relevant Persons.  Any person who is not a Relevant Person should not act or rely on this document or any of its contents.

 

AmCham Corporate Patrons

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