Gecina has successfully placed a €300 million bond issue, with a maturity of 10 years through to May 30, 2023. The bonds were issued with a 140 bp spread over the mid-swap rate and a coupon of 2.875%, the lowest coupon for the longest maturity on a bond issue by Gecina.
The cost of this issue reflects the contraction in market rates, and above all the improvement in Gecina’s financial profile, with Standard & Poor’s and Moody’s upgrading their respective ratings to BBB and Baa2 during the fourth quarter of 2012.
This operation will consolidate Gecina’s ability to stabilize the average cost of its debt at a maximum of 4.0% in 2013, while contributing towards extending the maturity of the Group’s financing. The placement was carried out with a broad base of pan-European investors and five times oversubscribed, highlighting the market’s confidence in Gecina’s profile and prospects. The funds resulting from this issue will further strengthen the Group’s liquidity position. Crédit Agricole CIB, HSBC, Natixis and Société Générale CIB were joint book runners for this operation.