CPI PROPERTY GROUP – Inaugural Japanese Yen Bond Offering

CPI PROPERTY GROUP – Inaugural Japanese Yen Bond Offering

CPI PROPERTY GROUP (“CPIPG” or the “Company”), the leading owner of incomegenerating real estate in the Czech Republic, Berlin and the CEE region, announces the successful issuance of JPY 11 billion (approximately EUR 85 million) of bonds on the TOKYO PRO BOND market.

“This is a ground-breaking transaction for CPIPG and for the Japanese bond markets,” said Martin Nemecek, CEO of CPIPG. “CPIPG is the first European real estate company to complete a public bond offering in Japan, the first non-financial issuer on the TOKYO PRO BOND market, and the first foreign real estate company to obtain a credit rating from Japan Credit Rating Agency (JCR). We are pleased with the positive response to our credit story.” The TOKYO PRO BOND format allowed CPIPG to issue efficiently and cost-effectively via the Company’s Euro Medium Term Note (EMTN) programme. The offering was split in two tranches: JPY 8 billion 1.414% notes due 10 December 2021 and JPY 3 billion 1.995% notes due 8 December 2028. Nomura International and Société Générale acted as joint bookrunners on the offering. The notes are rated Baa2 (stable) by Moody’s, BBB (stable) by Standard & Poor’s and A- (stable) by JCR. Shortly after pricing, CPIPG converted the proceeds into Euros through cross-currency swaps. “Issuing in Japan allows CPIPG to diversify our fixed-income investor base. We also appreciate that Japanese investors can accommodate modest-sized transactions, which could fit our needs well considering CPIPG’s limited refinancing requirements over the next few years,” said David Greenbaum, CFO of CPIPG. “We will return to Japan regularly to update investors on our credit and expect to continue growing our presence in the market.”