German REIT raises €350m through bond issue

 The 10-year notes carry an annual coupon of 1.5%.

German REIT Alstria has raised €350 million through the issue of an unsecured, fixed-rate corporate bond.

“The bond placed today and the intended tender offer for the partial repurchase of our existing bonds have a substantial positive effect on our debt maturity and help to diversify our debt profile, therefore reducing overall refinancing risks” – Olivier Elamine

The 10-year notes carry an annual coupon of 1.5 percent. The German REIT said the new issue optimises and extends the maturity profile of the firm’s debt portfolio.

The fresh capital will also be used to fund the partial repurchase of existing bonds. Last year, the Hamburg-headquartered REIT placed two bond issues of €500 million to refinance the bank liabilities of Deutsche Office, another German office landlord, which Alstria acquired in October 2015.

Alstria’s latest bond issue has received a BBB rating from Standard & Poor’s. It will be admitted to trading on the regulated market of the Luxembourg Stock Exchange.

“The bond placed today and the intended tender offer for the partial repurchase of our existing bonds have a substantial positive effect on our debt maturity and help to diversify our debt profile, therefore reducing overall refinancing risks,” said Olivier Elamine, CEO of Alstria.

“The liability management process that will follow is aimed at taking advantage of the favourable financing conditions to further improve our cash flow going forward,” Elamine added.

UBS Investment Bank and BNP Paribas acted as joint bookrunners on the transaction.

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