Xior raises €100m with first US green bond private placement

Belgian student housing REIT Xior said on Friday that it has strengthened its liquidity by €100 mln through the issue of its first US green bond.

The notes have maturities of 6 and 12 years, with coupons of 1.92% and 2.32% respectively, allowing Xior to significantly extend its average debt maturity at a financing cost similar to its current average.

The bonds were placed through a US private placement with three institutional investors belonging to a large international insurance group.

‘Xior is proud to announce this new milestone in its funding strategy, a process which was started before the Covid-19 crisis and the successful completion of which underscores the confidence in our credit profile,’ the company said in a statement.

Proceeds will be used exclusively to (re)finance green buildings, renewable energy, energy efficiency, waste management, clean transportation and water management projects which are also aligned with the UN Sustainable Development Goals (SDGs).

Together with its existing committed financing lines Xior has now secured its funding needs through the middle of 2022.

Christian Teunissen, CEO of Xior Student Housing said: ‘The fact that we can successfully complete this process to secure long-term financing from an internationally renowned investor at an attractive rate, especially in these uncertain times, represents a new milestone in our financing strategy, as it demonstrates the solid credit profile of Xior as well as our commitment to our ESG goals. It underscores our capacity to diversify and further extend our funding sources and attract international financing.’

ABN Amro acted as sole arranger and green structuring advisor.


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