Central European retail property specialist Atrium European Real Estate has priced a €300 mln inaugural green bond offering due 5 September 2027 under its Euro medium term note (EMTN) programme.
Unveiled on 29 January, the new green notes were issued by Atrium finance issuer and are guaranteed by Atrium.
According to the firm, the notes attracted strong demand with an orderbook amounting to €1.2 bn, and were placed with a broad range of European and international institutional debt investors, including those investors with a specific focus on ESG/sustainable investment portfolios.
The new green notes carry a coupon of 2.625%; the issue price is 98.167%.
Ryan Lee, chief financial officer of Atrium Group, said: 'This transaction represents Atrium’s first green bond issuance and we are very pleased with its successful execution.
'The notes were issued under the company’s green financing framework and support our strategy to continue to embed ESG within our operations as well as broaden the company’s investor base and diversify our funding. The oversubscription of the transaction, and attractive pricing, illustrates the strong investor support for Atrium.'
The proceeds of the offering will be allocated to finance or refinance eligible projects plus specific assets, as defined in Atrium's green financing framework. As a result of the enhanced liquidity arising from the issue, Atrium expects to be able to purchase euro-denominated bonds issued by the company.
Atrium will apply for the new green notes to be listed on the official list of the Luxembourg Stock Exchange and admitted to trading on the Luxembourg Stock Exchange’s regulated market.
The New Green Notes have been assigned a rating of Baa3 by Moody’s and BBB by Fitch, in line with Atrium’s corporate ratings.
Citigroup assisted Atrium with establishing the green financing framework in February 2020. Citigroup and ING acted as green advisors on the new green notes. Citigroup, Deutsche Bank, HSBC, ING, Morgan Stanley, Raiffeisen Bank International acted as Bookrunners on the transaction.