CPI aims to raise €1.25bn under EMTN programme

CPI Property Group will carry out a €1.25 billion Euro Medium Term Note (EMTN) programme to refinance senior debt and fund further acquisitions and property developments.

CPI Property Group will carry out a €1.25 billion Euro Medium Term Note (EMTN) programme to refinance senior debt and fund further acquisitions and property developments.

Moody’s assigned a provisional Baa3 rating to the company’s EMTN issue and a Baa3 rating to the planned senior unsecured notes of around €500 million that will be issued under the programme.

The rating is supported by the scale of CPI’s €5.7 billion portfolio, which is “well diversified across geography and asset class with no tenant or single asset concentration”, Moody’s said.

Around 75 percent of the company’s assets are in the Czech Republic and Germany, with “good growth prospects”. CPI also benefits from “favourable property markets with strong occupational demand and solid investor appetite for real estate assets”, the rating agency said.

The company intends to use proceeds from the notes for acquisitions, capital expenditure, and to refinance existing secured debt and local unsecured bonds.

“The rating provides CPI Property Group with access to international capital markets and further strengthens its position on local markets,” said Martin Nemecek, CEO and managing director of CPI Property Group.

The new bonds will be listed on the Irish Stock Exchange in Dublin.

Deutsche Bank, SG CIB, UniCredit, and UBS Investment Bank have been appointed by CPI Property Group to establish the bond programme.

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