CPI Property Group issues European market bonds
Moody’s has assigned a first-time "Baa3" long-term issuer rating to Luxembourg-based CPI Property Group with a stable outlook. The same rating was given to the Group’s bond program.
CPI Property Group concentrates on long-term investments and property leases, predominantly in Central Europe and Germany. The group intends to place up to EUR 1.25 billion in a Medium Term Note on the European market, according to a press release sent to the Budapest Business Journal.
"The achievement of the investment grade rating for CPI Property Group is a historic milestone for the company. It reflects the leading position of CPI Property Group among real estate companies in the CEE region and Berlin. The rating provides CPI Property Group with access to international capital markets and further strengthens its position on local markets," commented Martin Němeček, CEO & managing director of CPI Property Group.
New bonds issued by CPI Property Group will be listed on the Irish Stock Exchange in Dublin and targeted for the first time at European markets and institutional investors. Deutsche Bank, SG CIB, UniCredit, and UBS Investment Bank have been appointed by CPI Property Group to establish the bond program.
Approximately half of the capital raised will go to refinancing senior debt, which will further reduce management costs. Part of the capital will be used to invest in the existing portfolio, reconstruction and modernization of selected properties, specifically shopping centers. The remaining funds will be allocated for new acquisitions.
SUPPORT THE BUDAPEST BUSINESS JOURNAL
Producing journalism that is worthy of the name is a costly business. For 27 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.