CTP Green bonds with largest inaugural issue in CEE real estate

by   CIJ Hungary
2020-10-15   10:50

CTP, the largest logistics property owner in CEE, has successfully issued a debut Green bond for EUR 650M, with Morgan Stanley acting as the sole Rating and Green structuring advisor on this issue. CTP’s inaugural Green bonds became the largest debut issuance by a CEE real estate company. According to a press release issued by the company, the bonds received a stron reception from investors and were several times oversubscribed with a peak order book in excess of EUR 2 Bn. CTP operates 100 parks across Central Europe and works with over 500 tenants in multiple CEE countries.

CTP had chosen to issue Green bonds after its 2019 commitment to BREEAM certify its whole portfolio of logistics and industrial parks to BREEAM Very Good and above. The proceeds from this issue are to finance or refinance a portfolio of Eligible Green Assets in accordance with the companies Green Bond Framework.

Richard Wilkinson, CFO at CTP said: “CTP was in the right place at the right time to be able to successfully execute its debut bond. Logistics properties have strong fundamentals at the moment, particularly in CEE which has some of the strongest economic fundamentals in Europe. We also have a long term commitment to sustainability as evidenced by the BREEAM certification of our entire portfolio. CTP’s robust credit fundamentals were very well appreciated by rating agencies and investors, allowing to successfully secure two investment grade ratings from Moody’s and S&P and complete our debut green bond despite turbulent market conditions.“