P3 Group successfully prices EUR 500 million Green Bond at 4.0%

P3 Group S.àr.l. has announced the successful pricing of a EUR 500 million Green Bond with a 4.0% fixed annual coupon. The bond, with a 7.6-year maturity, reinforces P3’s position in the investment-grade bond market and reflects the company’s ongoing ability to access capital under favorable terms. This marks a significant milestone in P3’s funding strategy, which has raised over EUR 6 billion in new debt since December 2021.

Issued under P3’s Euro Medium Term Note (EMTN) Programme, the bond offers a fixed yield of 4.103% per annum and is expected to be listed on the Luxembourg Stock Exchange’s official list and traded on the Euro MTF Market. The bond, carrying a BBB rating from S&P, will settle on September 19, 2024.

Thilo Kusch, CFO of P3, expressed satisfaction with the transaction, stating: “This bond issuance strengthens P3’s reputation as a stable and reliable issuer in the real estate bond market. Taking advantage of favorable conditions after our strong H1 results, we were able to price the Green Bond swiftly. With demand peaking at over EUR 3.2 billion, we secured highly attractive pricing with a 175-basis point spread over mid-swaps. The bond will help fuel our expansion in logistics real estate, which now spans 11 countries and is valued at over EUR 9.4 billion.”

Ben Helsing, Treasurer and Head of Debt Investor Relations, added: “Investor demand was exceptional, with the bond oversubscribed 6.5 times at peak and final orders totaling around EUR 2.4 billion. Securing interest from over 100 investors highlights the market’s confidence in P3 as a high-quality issuer of investment-grade bonds.”

The bond issuance was managed by a consortium of leading financial institutions, with BNP Paribas, Crédit Agricole CIB, Deutsche Bank, HSBC, and SMBC Bank as Active Joint Bookrunners, and ING and J.P. Morgan as Passive Joint Bookrunners.

Proceeds from the bond will be used to refinance eligible green assets, aligning with P3’s Green Financing Framework. Sustainalytics has confirmed the framework’s compliance with the International Capital Market Association’s Green Bond Principles. Additionally, the bond will strengthen P3’s liquidity, leaving all EUR 950 million in committed revolving credit facilities unutilized.

Photo: Ben Helsing, P3 Group Treasurer and Head of Debt Investor Relations