Beni Stabili issues €300m unsecured bond

The transaction has been oversubscribed by about seven times, with total orders of more than €2 billion.

Listed Italian real estate company Beni Stabili has launched €300 million of senior unsecured bonds, in a push to diversify its funding strategy.

“A large and diversified pool of high-quality investors participated in the deal, confirming the improved appeal of Beni Stabili’s profile with the international fixed-income investor community following the decision to obtain a credit rating”

– Firm statement

The seven-year bond carries a 1.625 percent fixed annual coupon. The notes were priced at a spread of 115 basis points over the reference swap rate, said Beni Stabili.

The transaction has been oversubscribed by about seven times, with total orders of more than €2 billion. The date of issuance and settlement of the bonds is expected to be 17 October.

“A large and diversified pool of high-quality investors participated in the deal, confirming the improved appeal of Beni Stabili’s profile with the international fixed-income investor community following the decision to obtain a credit rating,” the Italian REIT said.

The notes were assigned a rating of BBB- by S&P Global, which is in line with Beni Stabili’s rating.

Beni Stabili will use the proceeds to extend its average debt maturity while reducing its cost of debt, the firm said.

Banca IMI, BNP Paribas, Crédit Agricole, Société Générale and UniCredit acted as joint lead managers.

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