Klépierre successfully places a 15-year 600 million euro bond at a 1.25% coupon

Paris – September 19, 2016

 

Klépierre announces that it successfully issued today a 15-year, 600 million euro bond maturing September 29, 2031. The bond was priced at a 60 bps margin above the swap rate which translates into a coupon of 1.25%. Oversubscribed three times, the notes were placed quickly after launch with long term, high-quality global investors. Investors from France, the UK and Germany represented 73% of the allocated book.

This bond features the lowest coupon ever for a long dated (more than 15-year) Euro bond issue by a REIT sector company, illustrating in favorable market conditions, Klépierre’s strong credit quality and business profile.

Barclays, CA-CIB, Citibank, Goldman Sachs, JP Morgan and Société Générale acted as active bookrunners for the new issue.

Meanwhile, the same day, Klépierre launched a cash tender offer on two outstanding bonds:

  • a EUR 500 million euro bond issued by Klépierre SA maturing in September 2019 and offering a 2.75% coupon (FR0011321405);
  • a EUR 500 million euro bond issued by Corio N.V. maturing in February 2021 and offering a 3.25% coupon (XS0896119384).

The offer period for both tendered bonds is expected to end on September 26, 2016. JP Morgan, RBS and Société Générale are acting as active bookrunners in the tender offer.

These transactions support the Group’s financing strategy, which aims to reduce its financing costs while lengthening its average maturity schedule. Assuming current market conditions, the net cost of debt should decline below 2.0% by 2017.

Download the press release

Donwload the tender offer memorandum

September 19 2016

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