Argan repaid its bond in an amount of €130m without refinancing needs
July 06 2023 - 11:45AM
Argan repaid its bond in an amount of €130m without refinancing
needs
Press release –
Thursday, July 6,
2023
–
5.45pm
Argan repaid
its bond in an amount
of
€130m
without refinancing
needs,thus
confirming tight
control over its
debt
As planned, ARGAN has just proceeded to the
repayment of its bond in an amount of €130m, issued in June 2017,
at a fixed rate of 3.25%. Note that ARGAN had set this amount aside
following the bond in an amount of €500m that was issued at
particularly favourable conditions in November 2021 (with a rate of
1.011% for a maturity in November 2026). Most of Argan’s debt (68%
at end of 2022) is comprised of mortgage loans (asset by asset)
with ongoing amortization, which – as a result – does not require
any refinancing in the short term.
Estimated at
2.4%
for 2023,
the cost of debt remains under
tight control
Moreover, as Argan’s cost of debt is marginally
exposed to Euribor 3-month rate variations (only 8% of the gross
debt at the end of 2022), it thus has very little sensitivity to
the increase of market interest rates observed since the first
half-year of 2022.
As a result, taking into account an average
projected Euribor 3-month rate at 3.4% for the full year 2023, the
average cost of debt would stand at 2.4%.
With a BBB- (stable outlook)
rating that was confirmed last February
by S&P,
ARGAN is thus reinforcing
the quality of its
signature.
Announced
at the start of the year,
Argan’s debt reduction strategy results in
gradual and constant decrease in the
amount of gross debt. This is linked to
a double
effect stemming
from the natural
amortization of
mortgage loans
(about
€100m
/ year)
and,
selectively,
from the proceeds
of targeted sales of
warehouses at the end of 2024 or early 2025,
depending on market conditions.
Financial calendar 2023 (Publication of the
press release after closing of the stock exchange)
- July 19: 2023 Half-year results
- October 2: 2023 3rd quarter sales
About Argan
ARGAN is the only French real estate company
specializing in the DEVELOPMENT & RENTAL OF PREMIUM WAREHOUSES
listed on EURONEXT.As at December 31, 2022, ARGAN’s portfolio
amounted to 3.5 million sq.m, comprising approximately 100
warehouses located exclusively in France, valued at €4.0 billion.
ARGAN is a listed real estate investment company (French SIIC) on
Compartment A of Euronext Paris (ISIN FR0010481960 - ARG) and is
included in the Euronext CAC All-Share, EPRA Europe and IEIF SIIC
France indices.www.argan.fr
Francis
Albertinelli – CFO Aymar de Germay – General SecretarySamy Bensaid
– Investor RelationsPhone: +33 1 47 47 47 40 E-mail:
contact@argan.frwww.argan.fr |
Marlene Brisset – Media relationsPhone: +33 6 59 42
29 35E-mail: argan@citigatedewerogerson.com |
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- 20230706 - Argan repaid its bond in an amount of €130m without
refinancing needs
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