HELSINKI: Citycon Group has announced intention to issue a euro-denominated senior unsecured bond approximately with a maturity of 7 years in an amount of around EUR 300 million.
The bond would be offered to institutional investors and would be issued by Citycon Treasury B.V. and guaranteed by Citycon Oyj. Citycon Treasury B.V. would apply for the bond to be admitted to the Official List of the Irish Stock Exchange (Euronext Dublin) and to trading on its regulated market.
The bond would be issued under the issuer’s EUR 1.5 billion EMTN programme dated 26 March 2020 and supplemented on 11 November 2020 and 1 March 2021.
All net proceeds from any potential bond issue would be used to refinance existing debt and for such general corporate purposes of the Group that meet Citycon’s green financing framework requirements.
The issuance is a part of Citycon Group’s refinancing transaction, and Citycon expects to apply a portion of the net proceeds of any potential issue to purchasing certain euro-denominated bonds issued by the Citycon Group which are validly tendered and accepted for purchase in accordance with the tender offer launched by Citycon on 3 March 2021.
Citycon’s green financing framework reflects practices that support the transition to a sustainable and low carbon economy through the development of green assets. Proceeds allocated in accordance with the framework will be used to finance or re-finance eligible green assets in categories green buildings, energy efficiency, renewable energy or waste management.
Citycon Group has mandated Danske Bank, Deutsche Bank, Nordea Bank, OP Corporate Bank, SEB and Swedbank as Joint Bookrunners.
Citycon is a leading owner, manager and developer of mixed-use centres for urban living including retail, office space and housing.
Citycon has investment-grade credit ratings from Moody’s (Baa3), Fitch (BBB-) and Standard & Poor’s (BBB-). Citycon Oyj’s share is listed in Nasdaq Helsinki.
