CPI PROPERTY GROUP (hereinafter “CPIPG”, or together with its subsidiaries the “Group”) announces the Group’s intention to issue green bonds in Hungary.
The green bonds (ISIN code: HU0000359898) would be issued under the Bond Funding for Growth Scheme (BGS), which was implemented by the National Bank of Hungary (MNB) to increase the liquidity of the local bond market. The issuer would be the Group’s subsidiary, CPI Hungary Investments Kft., with an unconditional guarantee from CPIPG. Following an auction during the week commencing 3 August 2020, CPIPG expects to issue 30 billion Hungarian Forint (about €86 million) of senior unsecured bonds with a 10-year bullet maturity and a coupon in Forint of about 2.25%. Proceeds from the transaction would be used for general corporate purposes which may include capital expenditures, acquisitions, developments, debt repayment or retention of cash. Such proceeds will be allocated in line with the Guarantor’s Green Bond Framework available at: https://www.cpipg.com/reports-presentations-en#tab-item-3.
“CPIPG is proud of our diverse bond investor base and our ability to access unique sources of long-term financing,” said David Greenbaum, CFO of CPIPG. “The Group is pleased that our participation in the BGS will result in Hungary’s first corporate green bond transaction, thus creating an important new benchmark for the local market.”
CPIPG is a leading owner of income-generating real estate in Hungary, with a Hungarian portfolio valued at €667 million as of year-end 2019. The Group’s properties include the award-winning Balance Hall office, Hungary’s first conscious building, which includes innovative tools to cut energy consumption.
“CPI Hungary has a clear track record of local leadership across ESG and CSR initiatives,” said Mátyás Gereben, country manager for CPIPG in Hungary. “Issuing green bonds under the BGS reflects our deep commitment to the sustainability and well-being of our properties, partners and tenants in Hungary.”