Xior raises €100m with the first green bond placement (BE)

Xior raises €100m with the first green bond placement (BE)

Xior Student Housing has successfully issued its first debt capital markets transaction by means of a €100m Green US Private Placement. The notes have maturities of 6 and 12 years, with coupons of 1.92% and 2.32% respectively, which means that Xior is able 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.


Together with its existing committed financing lines, it has now secured its funding needs through the middle of 2022, granting it an extremely secure position in these uncertain times. The notes have a notional amount of €100m split between a €34m tranche with a 6-year tenor and a €66m tranche with a 12-year tenor, bearing a coupon of 1.92% (for the 6-year notes) and 2.32% (for the 12-year notes). The notes are issued under Xior’s newly established Green Finance Framework, dated 13 March 2020, on which Xior obtained a positive Second Party Opinion provided by Sustainalytics.


This first issue of notes through a US Private Placement will further strengthen Xior’s debt maturity profile at an average coupon comparable to its current cost of financing, diversify its funding and proves the company’s credit profile is well supported, especially in the current turbulent times. 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). 


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. This new green bond extends our debt maturity further at a financing cost that remains the same and therefore positions us well to meet any challenges and seize any opportunities in the period to come.”   



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