CTP green bond success marks largest inaugural issue in CEE property

CTP, one of the largest logistics property owner-developers in Central and Eastern Europe (CEE), has successfully issued its debut green bond for a total of €650 mln.

According to the firm, the move represents the largest ever 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 bn.

Richard Wilkinson, chief financial officer 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 decided to issue green bonds following its 2019 commitment to Breaam-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 green bond framework as well as financing eligible projects going forward.

Morgan Stanley, acting as the sole rating and green structuring advisor said: '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. Demand allowed CTP to upsize the issue by €150 mln from original guidance.

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

CTP operates 100 parks across Central Europe serving over 500 tenants. The firm is targeting carbon-neutral status for its operations by 2023.


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