Listed French real estate firm Icade has raised €500 million through the issue of a new bond which carries the lowest ever coupon for a note issued by the firm.
The REIT, which is part of the Caisse des Dépôts group, announced that the nine-year bond carries an annual coupon of 1.125 percent. The firm said that the funds were raised with an 82 basis points spread above the reference rate.
The bonds were more than three times oversubscribed, the company added.
BNP Paribas, CM-CIC, JP Morgan, Natixis and Société Générale Corporate & Investment Banking were joint book-runners on the deal.
In addition to the new bond, Icade has launched an offer to redeem two existing bonds in cash, as it aims to extend its average debt maturity and improve its cost of debt in the medium-term.
The firm is aiming to redeem a €500 million bond maturing in January 2019, which carries a 2.25 percent coupon, and a separate €500 million bond due in April 2021, which carries the same coupon. BNP Paribas, HSBC Bank and Société Générale are active book-runners on the redemption offer.
Icade said that the proceeds from the issue will be used to repay existing debt, as well as for general corporate purposes.
Icade is a significant real estate investor in offices and business parks in the Greater Paris area and also invests across regional France. Its assets were most recently valued at €9.5 billion.