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CPI Property Group issues sustainability-linked bonds

Sustainability

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CPI Property Group (CPIPG) has become the first real estate company from the CEE region to issue sustainability-linked bonds, according to a press release sent to the Budapest Business Journal.

"CPIPG is proud of our leadership in sustainable financing," said David Greenbaum, CFO of CPIPG. "The group was the first borrower from our region to issue benchmark green bonds in 2019 and has further strengthened our ESG agenda and capital structure through this innovative transaction."

The sustainability-linked bonds were issued in the amount of EUR 700 million, with an annual coupon of 1.75% and a maturity date of January 14, 2030. 

In keeping with CPIPG's commitment to reduce the greenhouse gas (GHG) emissions intensity of the group's property portfolio by 30% through 2030 versus the 2019 baseline, 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 GHG emissions intensity of about 22% by year-end 2027.

Proceeds from the sustainability-linked bonds will be used primarily to fund the full repayment of two bonds: CPIPG's 4.75% notes due March 8, 2023, with about USD 377 million outstanding, and 2.125% notes due October 4, 2024, with about EUR 239 million outstanding.

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