CPI PROPERTY GROUP – Groundbreaking Green Bond Financing

CPI PROPERTY GROUP – Groundbreaking Green Bond Financing

CPI PROPERTY GROUP (“CPIPG” or the “Company”), the leading owner of income-generating real estate in the Czech Republic, Berlin and the CEE region, announces the successful issuance of €750 million of Reg S senior unsecured green bonds due 23 April 2027 with a coupon of 1.625% (the “Notes”).

“We are proud to be the first company from the CEE region to issue a benchmark Euro-denominated green bond,” said Martin Nemecek, CEO. “The strong demand and attractive pricing received from the market demonstrate investors’ continued confidence in CPIPG’s strategy and management team.”


Investor demand for the new issue peaked at more than €2 billion, following a two-day marketing exercise in London and Paris. The UK represented 38% of the orderbook, with strong interest from Germany, Austria (18%) and France (17%). Investors from the rest of continental Europe and Asia also participated. Fund managers accounted for 77% of demand followed by insurance companies, pension funds and banks. Including proceeds from the green bond issuance, CPIPG’s total liquidity (in the form of cash and revolving credit facilities) exceeds €2 billion; the Company intends to use a significant portion of cash to acquire high quality office properties in central Warsaw, Poland during Q4 2019 and 2020.


About Green Bonds

Green bonds are used to fund projects which have a positive impact on the environment. Investor demand for green bonds has soared to new records, with over US$200 billion issued in 2019. CPIPG has developed a framework under which the Company has committed to use proceeds from green bonds to finance and/or refinance existing and/or future projects which improve the environmental performance of CPIPG’s property portfolio and contribute to the Company’s climate impact mitigation objectives. The framework (available on CPIPG’s website) defines eligibility criteria according to four types of green assets/initiatives: certified green buildings, energy efficiency projects, renewable energy and the promotion of sustainable farming. The framework has a Second Party Opinion (“SPO”) provided by Sustainalytics.


“Fixed-income investors are highly attuned to ESG issues, and the green bond offered a good platform for CPIPG to highlight our ESG progress and plans for the future,” said David Greenbaum, CFO of CPIPG. “Increasing our commitment to sustainability while maintaining a strong capital structure are critical elements of CPIPG’s long-term investment strategy.”


The Notes are listed on the Main Market of the Irish Stock Exchange plc (trading as Euronext Dublin) and are accepted for clearance through Euroclear and Clearstream, Luxembourg. The Notes, issued under the Company’s EUR5,000,000,000 Medium-Term Note Programme, are rated Baa2 (stable) by Moody’s and BBB (stable) by Standard & Poor’s. The ISIN code for the Notes is XS2069407786 and the Common Code is [xxx]. The base prospectus, supplements to the base prospectus and the final terms for the Notes are available at the website of the Company (www.cpipg.com).