French real estate investment trust Gecina has placed a €500 million bond at the lowest ever coupon that it has ever achieved for a bond issue.
Gecina sold the bonds, which mature in January 2029, at a coupon of 1 percent.
As well as being its lowest priced issue, the 12.3-year term was the longest ever maturity for a bond issued by the group.
The issue was more than two times oversubscribed by pan-European investors, Gecina said. CM-CIC, Goldman Sachs, HSBC, JP Morgan, Mediobanca and Société Générale were the book-runners for the issue.
Gecina is also opening a redemption offer for three outstanding bond issues:
- A €650 million euro bond issue maturing in January 2019, with a 4.75 percent coupon
- A €500 million euro bond issue maturing in July 2021, with a 1.75 percent coupon, and;
- A €300 million euro bond issue maturing in May 2023, with a 2.875 percent coupon
The redemption offer closes on 3 October 2016. BNP Paribas, Goldman Sachs, HSBC and Société Générale are the book-runners for the redemption offer.
The REIT said that the issue and redemption offers are in line with its financing strategy, extending the average maturity of its debt and reducing its average cost over the medium term.
Gecina’s portfolio was worth €11.7 billion at 1 July 2016, with 97 percent located in the Paris region. The firm has a French office portfolio and a ‘diversification’ division with residential assets and student residences.