Dentons has advised CPI Property Group (CPI), the leading owner of income-generating real estate in the Central and Eastern Europe region and one of Europe’s largest landlords, on the issue of Regulation S €500 million 7.000% green bonds due in 2029. The green bonds were issued under CPI’s recently updated Euro Medium Term Note Programme and are listed on the regulated market of Euronext Dublin.
The green bonds received a very positive response from the market as more than €3 billion of orders were placed, meaning the orderbook was six times oversubscribed, which is the strongest-ever response to a bond issue by CPI.
As the leading owner and manager of income-generating real estate in its region, CPI plans to continue to improve the environmental performance of its properties. Under its sustainability finance framework, CPI has committed to use proceeds from the green bonds to finance and/or refinance green initiatives, such as acquiring and refurbishing certified green buildings, improving energy efficiency and promoting sustainable farming. CPI intends to allocate an amount equivalent to the net proceeds of the bonds to fully retire the bridge loans related to the acquisitions of IMMOFINANZ and S IMMO.
Martin Matula, General Counsel of CPI, said: “We were very pleased with the strong investor demand and successful outcome of this bond issuance. It underscored the market’s confidence in our strategy and commitment to sustainability. The guidance and advice from Dentons was pivotal and we were grateful for their support.”
Nick Hayday, partner in Dentons’ Capital Markets practice in London who led on the transaction, said: “We were thrilled to support the CPI team on this highly significant bond issue and impressive return to the bond markets. Our team has significant experience in advising on green and sustainability-linked bonds and we were able to draw upon this experience to support CPI on its successful green bond issuance.”
Dentons acted as English law and Luxembourg law counsel to CPI. The Dentons London-based Debt Capital Markets team was led by partner Nick Hayday and associate Zeeshan Hussain, while Luxembourg-based counsel Olivier Lesage, partner Stéphane Hadet and associate Arnida Alija provided Luxembourg law advice.
