Citycon, a prominent real estate company, has announced plans to issue a green bond and has also made a purchase offer for a previous bond that was issued by the company.
The company disclosed its intention to release a green bond valued at EUR 300 million. This is a significant step towards sustainable financing and reflects Citycon’s commitment to green initiatives.
The proposed term of the loan is approximately 5 years. It is targeted towards institutional investors. The bond will be issued by Citycon Treasury BV, a subsidiary of Citycon, with Citycon Oyj acting as the guarantor of the loan. Upon issuance, Citycon Treasury BV will apply for the bond to be listed on the official list of the Irish stock exchange (Euronext Dublin), allowing it to be traded on the exchange’s regulated market.
The proceeds from the potential bond issue will be utilized entirely for refinancing existing loans of the Citycon Group. The funds will also be used for general business-related purposes that are in line with Citycon’s green finance reference framework. This framework has been designed to incorporate sustainability goals within the financial operations of Citycon.
The issuance of the green bond is part of the broader refinancing strategy of the Citycon Group. Citycon anticipates using a part of the net proceeds from the potential issuance to buy back certain existing Euro-denominated bonds of the Citycon Group. The bonds to be bought back will be those tendered and accepted for purchase as per the tender offer announced by Citycon on 27/02/2024.
In addition to the announcement of the green bond, the company also communicated that it will announce the purchase offer for the outstanding bond. The bond in question is due to mature this year and had been issued in two tranches – one in 2014 and the other in 2020.
