German property firm TLG Immobilien said it has successfully placed an unsecured, fixed rate bond for a total amount of €400 mln.
The notes, due in 2024, were issued at an issue price of 99.735%, and will bear interest at a rate of 1.375% per year and a total yield of 1.415% per year.
The bond was 2.9 times oversubscribed, TLG said.
Commenting on the successful bond placement, Peter Finkbeiner, member of the Management Board of TLG Immobilien, said, 'With its first corporate bond issuance, TLG further diversifies its sources of funding by gaining access to a highly liquid debt capital market, supporting us in the further execution of TLG’s growth strategy.'
TLG will use the net proceeds from the issue to refinance a number of secured loans in an amount of €300 mln in order to lower its average cost of debt as well as to fund future acquisitions. The company's average cost of debt is expected to drop below 2% following the issue.
Deutsche Bank and JP Morgan acted as joint bookrunners on this transaction. Victoriapartners acted as independent financial advisor to TLG.
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