Klepierre has successfully issued a 15 - year €500m bond maturing December 13, 2032. The bond was priced at 50 basis points above the swap rate, the tightest spread ever for a European REIT for a 15 - year maturity or longer. It translates into a coupon of 1.625%.
Oversubscribed 2.4 times, the notes were placed with high - quality, long-term global investors, notably from Germany (41% of the allocated book), France (33%) and the UK (18%).
BNP Paribas, Crédit Agricole CIB, HSBC, ING, Mizuho International and Natwest Market acted as joint - bookrunners for the new issue.
Klépierre has also launched a cash tender offer for four outstanding bonds:
– A €500m bond (of which €309.9m currently outstanding) issued by Klépierre SA, maturing in September 2019 and offering a 2.75% coupon (FR0011321405) ;
– A €500m bond (of which €324.6m currently outstanding) issued by Corio N.V., maturing in February 2021 and offering a 3.25% coupon (XS0896119384) ;
– A €600m bond issued by Klépierre SA, maturing in March 2021 and offering a 4.75% coupon (FR0011019397) ;
– A €85m bond issued by Corio N.V., maturing in December 2022 and offering a 3.516% coupon (XS0864386825) .
The offer period for the tendered bonds is expected to end on December 6, 2017. Natixis, Natwest Market and Société Générale CIB are acting as dealer managers in the tender offer.
These transactions support Klépierre’s financing strategy, which aims to reduce financing costs while extending the average maturity of its debt.
