CPI Property Group’s €700 Million Sustainability-Linked Bond Offering

In UK Dentons, advised on the matter.

Dentons advised CPI Property Group with a team including Nick Hayday (Picture – Debt Capital Markets).

CPI Property Group (CPIPG), the leading owner of income-generating real estate in the Czech Republic, Berlin and the Central and Eastern Europe (CEE) region, executed its debut sustainability-linked bond issuance. The €700 million 1.750% bonds are due in 2030.

Goldman Sachs International, HSBC Continental Europe, Société Générale and UniCredit Bank AG acted as Joint Global Coordinators and Joint Bookrunners and Bank of China Limited, London Branch and Barclays Bank Ireland PLC as Joint Bookrunners.

Proceeds from the bonds will be used primarily to fund the full repayment of CPIPG’s 4.75% notes due 8 March 2023, and 2.125% notes due 4 October 2024. The bonds are rated Baa2 by Moody’s and BBB by Standard & Poor’s, and are listed on the main market of Euronext Dublin.

The sustainability-linked bonds are subject to a step-up margin of 0.25% in the final two years if CPIPG does not achieve a reduction in greenhouse gas emissions intensity of 22% by year-end 2027. This is in keeping with CPIPG’s commitment to reduce the greenhouse gas emissions intensity of their property portfolio by 30% by 2030, versus the 2019 baseline. CPIPG has ambitious plans for the future, and ensuring that these plans are in line with CPIPG’s commitment to Environmental, Social and Governance (ESG) principles and action is vitally important to its strategy. CPIPG recognises the important role that sustainable finance plays in supporting the transition to a low-carbon and more resource-efficient global economy.

The Dentons team was led by partner Nick Hayday (Picture), assisted by senior lawyer David Ferris and associate Zeeshan Hussain. Luxembourg-based counsel Oli­­vier Lesage, associate Pierre Hever and partner Stéphane Hadet provided Luxembourg law advice.

Involved fees earner: David Ferris – Dentons; Stephane Hadet – Dentons; Nick Hayday – Dentons; Pierre Hever – Dentons; Zeeshan Hussain – Dentons; Oli­­vier Lesage – Dentons;

Law Firms: Dentons;

Clients: CPI Property Group;

Author: Giulia Di Palma