URW announces the successful placement of a 1.3 Bn euros

Unibail-Rodamco-Westfield successfully issued a €1.3 billion dual-tranche green bond, exceeding expectations with a 4x oversubscription.

Summary

• Unibail-Rodamco-Westfield (URW) successfully issued a €1.3 billion green bond.
• The bond was split into two tranches: €650 million with a 5-year maturity and a 3.500% coupon, and €650 million with a 10-year maturity and a 3.875% coupon.
• The bond issuance was oversubscribed by 4 times, with an order book exceeding €5.2 billion at its peak.
• The average coupon rate achieved was 3.688%.
• Proceeds will be used to strengthen liquidity and extend the average debt maturity.
• The bond will finance or refinance green assets, aligning with URW's sustainability strategy and Better Places roadmap.
• The bonds are expected to settle and begin trading on Euronext Paris on September 11, 2024.

Sentiment

Score: 9

Explanation: The successful bond issuance with significant oversubscription indicates a very positive market sentiment towards URW and its sustainability initiatives.

Positives

• Successful placement of a large green bond (€1.3 billion).
• Significant oversubscription (4 times), indicating strong investor confidence.
• Attractive average coupon rate of 3.688%.
• Proceeds will strengthen liquidity and extend debt maturity.
• Aligns with the company's sustainability strategy and Better Places roadmap.

Future Outlook

The successful bond issuance strengthens URW's liquidity position and extends its average debt maturity, supporting its future growth and sustainability initiatives.

Industry Context

This successful green bond issuance reflects a growing trend in the real estate sector towards sustainable financing and investor demand for environmentally responsible investments. The strong oversubscription suggests confidence in URW's creditworthiness and its sustainability strategy.

Next Steps

• Settlement and admission to trading of the bonds on Euronext Paris on September 11, 2024.
• Utilization of proceeds to strengthen liquidity and extend debt maturity.
• Continued implementation of the company's sustainability strategy and Better Places roadmap.

Key Dates

Keywords

green bond, Unibail-Rodamco-Westfield, URW, financing, debt, sustainability, investment, real estate