Deutsche Annington raises €1bn bond

Deutsche Annington, which has made a €3.9bn offer for its main rival Gagfah, has raised €1bn by issuing a seven-year bond. The residential company will pay a coupon of 4%. The bonds are BBB- rated.

Deutsche Annington, which has made a €3.9bn offer for its main rival Gagfah, has raised €1bn by issuing a seven-year bond.

The residential company will pay a coupon of 4%. The bonds are BBB- rated.

The bond further shows the ability of residential German companies to raise large amounts of cheap debt due to the steady, diversfied incomes their portfolios generate.

The company also raised a €700m bond in April this year with a 50-year maturity and a coupon of 4.625%. The bonds are being used to repay a €2.5bn bridge loan issued by JP Morgan and Morgan Stanley in June last year to repay its Grand CMBS debt.

Stefan Kirsten, CFO of Deutsche Annington said: “This very successful placement reflects Deutsche Annington’s strong credit quality and our existing strong access to international capital markets. It also clearly underlines that investors view our planned combination with Gagfah as positively as we do.”

Earlier this month the company made an approach to buy its main rival, Gagfah. If succesful the deal will create a company with a €9bn portfolio.

JP Morgan acted as sole book runner.

 

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