CTP raises EUR 500 mln with 3rd green bond issue

Logistics

CTP B.V. raised EUR 500 million with their third green bond issue this month, increasing the total raised from Green Bonds to EUR 1.55 billion since their inaugural issuance in September 2020, according to a press release sent to the Budapest Business Journal.

On February 18, the group issued its third green bond with a nominal of EUR 500 mln, a coupon of 0.75% and a six-year maturity.  As with the first two issues, this third bond was also concluded under its Green Bond Framework, continuing CTP’s strategy to only issue Green Bonds as this underpins the groups’ sustainability commitment. This third issuance increases the total amount that CTP has raised through bond issuances to EUR 1.55 bln over the last five months. It now has three varying maturities (of 2023, 2025 and 2027 respectively) outstanding.

Both Moody’s and S&P credit rating agencies reconfirmed CTP’s investment-grade credit ratings of Baa3 (Stable) and BBB- (Stable) respectively. The issuance received strong interest from investors, attracting orders from over 150 institutional accounts. The book was more than three times covered with total orders exceeding €1.7billion. Final allocation was made primarily to European asset managers and insurers who bought 80% of the issue, with banks and other investors each taking 10%. A substantial majority of the investors declare a strong preference for Green Bonds.

Jan-Evert Post, head of funding & investor relations at CTP comments, "We are delighted with the response of bond investors to our recent Green Bond issuance. The ongoing demand for our Green Bonds has allowed us to reduce our cost of funding to 1.6%, compared to 2.2% before our first bond in September 2020."

ADVERTISEMENT

Bosch to invest HUF 6 bln in Hungary SSC Innovation

Bosch to invest HUF 6 bln in Hungary SSC

2,837 new coronavirus cases registered in Hungary Figures

2,837 new coronavirus cases registered in Hungary

Survey data suggests nearly 60% of Hungarians sure to be vac... Issues

Survey data suggests nearly 60% of Hungarians sure to be vac...

Tourism could see labor shortage upon recovery Tourism

Tourism could see labor shortage upon recovery

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.