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 $350 million of Reg S notes due 8 March 2023 (the “Notes”).
“CPIPG believes that cultivating a broad investor base is supportive to our long-term funding plans,” said David Greenbaum, CFO. “The US Dollar bond allowed us to reach new bondholders while benefiting from repeat supporters of our credit. We appreciate the positive response to this transaction as CPIPG continues to deliver on our capital structure and operating targets.”
Investor demand for the Notes peaked at more than 3 times the originally proposed issuance size of $300 million. CPIPG agreed to issue $350 million in response to strong demand, and will use the proceeds to repay short-term debt while retaining additional cash on the balance sheet. Investors from the UK were 58% of the orderbook, followed by Asia (21%), Switzerland (10%), and the rest of Europe (11%). The broad distribution of the US Dollar transaction reflects CPIPG’s previous activities to diversify the Group’s investor base, including issuance in Swiss Francs, Japanese Yen and Hong Kong Dollars. CPIPG converted the US Dollar principal and coupons into Euros through cross-currency swaps.
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 EUR3,000,000,000 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 XS1955030280 and the Common Code is 195503028. 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).