CTP raises €1b from green bond issue

European logistics property developer-investor CTP has raised €1 bn from a green bond issue, its largest to date following the company’s IPO on Amsterdam Euronext in March.

The issue, marking CTP’s second recourse to the bond market in 2021, includes a €500 mln four-year tranche and a €500 mln eight-year tranche. Total demand for the issue reached nearly €4 bn.

The annual coupon on the four-year bonds was fixed at a rate of 0.5%, the lowest ever coupon on a benchmark bond offering from a CEE corporate. The eight-year tranche has a fixed annual coupon of 1.25% and marks CTP’s longest tenor to date.

CTP said the proceeds will be used to refinance its portfolio in the Czech Republic, its biggest market.

Richard Wilkinson, CFO of CTP, commented: ‘In our second visit to the bond market in 2021, CTP was able to successfully execute its inaugural dual tranche Green Bonds. Again we were able to attract significant demand from both existing and new institutional investors with over 200 investors participating.

‘This issue marks the final delivery on our promise to migrate our debt funding to a largely unsecured debt platform, with the bond proceeds going towards the prepayment of bank financing of our Czech portfolio. Importantly, this issue also establishes further data-points for our debt-yield curve, which now consists of five different tenors.’

CTP has chosen to issue exclusively green bonds following its 2019 commitment to certify its entire portfolio of logistics and industrial projects to the BREEAM Very Good standard and above.

Its debut green issuance in September 2020 raised a total of €650 mln, of which some 67% was placed with ‘typically green’ investors. This share increased to 86% in the latest offering.

Jan-Evert Post, head of funding & investor relations at CTP, added: ‘We are pleased with the outcome: after taking into account the prepayment of financing for the Czech portfolio, these coupons result in an average cost of debt of 1.25% to CTP, down from 1.6% following the bond issue last February and 2.2% immediately before we issued our first bond back in September 2020.’


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