LEG Immobilien SE places its biggest bond offering to date with nominal value of EUR 1.5 billion

LEG Immobilien SE announces the successful placement of an unsecured, fixed-rate corporate bond offering with a total nominal value of EUR 1.5 billion. The bond was issued in three tranches of EUR 500 million each:

The four-year tranche matures on 17 January 2026 bearing a coupon of 0.375% p.a.
The seven-year tranche matures on 17 January 2029 bearing a coupon of 0.875% p.a.
The twelve-year tranche matures on 17 January 2034 bearing a coupon of 1.500% p.a.

The net proceeds from the offering will predominantly be used to refinance the bridge facility for the portfolio acquisition of app. 15.400 from Adler on 29 December 2021 only a few days after the purchase price payment. Any remaining proceeds will be used for general corporate purposes. The bond offering was met with exceptionally strong investor interest reflected in a total demand of more than EUR 5.5 billion corresponding to a subscription level of 3.7-times.

"The strong investor interest in LEG Immobilien SE’s largest bond offering to date underlines the strong support for our growth strategy to develop the company from a regional market leader in North Rhine-Westphalia to one of the largest German property managers for affordable living. The proceeds from the EUR 1.5 billion bond offering will mainly be used to refinance the bridge facility for our approx. 15.400 apartment acquisition completed on 29 December 2021, as well as for general corporate purposes. The successful placement proves once more the excellent access of our company to the capital markets," explains Susanne Schröter, CFO of LEG Immobilien SE.

Deutsche Bank, Goldman Sachs Bank Europe SE, HSBC Continental Europe und UniCredit were active bookrunner on the transaction.