HELSINKI, March 4, 2021 /PRNewswire/ -- CITYCON OYJ
Stock Exchange Release 4 March 2021
at 18:30 hrs
Citycon Group has successfully placed a EUR 350 million green bond (the "Bond"). The
issuer of the Bond is Citycon Treasury B.V. and the guarantor is
Citycon Oyj. The 7-year senior unsecured fixed rate EUR-denominated
Bond matures on 12 March 2028 and
pays a fixed coupon of 1.625%.
The bond is issued under the issuer's EUR
1,500,000,000 EMTN programme dated 26
March 2020 and supplemented on 11
November 2020 and 1 March
2021. Citycon Treasury B.V. will apply for the Bond to be
admitted to the Official List of the Irish Stock Exchange (Euronext
Dublin) and to trade on its regulated market. The bond will be
rated by S&P, Moody's and Fitch in line with the corporate
ratings.
The net proceeds from the offering will be used to finance and
re-finance Eligible Green Assets and Projects in accordance with
Citycon's established Green Finance Framework (GFF). Citycon
expects to apply a portion of the net proceeds of the issue to
purchasing certain euro-denominated bonds issued by the Citycon
Group which are validly tendered and accepted for purchase in
accordance with the tender offers launched by Citycon on
3 March 2021.
Citycon's green financing framework reflects practices that
support the transition to a sustainable and low carbon economy
through the development of green assets. Proceeds allocated in
accordance with the framework will be used to finance or re-finance
eligible green assets in categories green buildings, energy
efficiency, renewable energy or waste management.
CFO and Executive Vice President Eero
Sihvonen: "The demand for the bond was extremely strong with
an orderbook close to five times over-subscribed, and we therefore
decided to enlarge the size of the issue to 350 million from the
original issue size of 300 million
euros. We are delighted to see that the spreads have
returned to pre-covid levels, which allowed Citycon to issue the
bond with a very attractive coupon of 1.625%. The new issue premium
is one of the lowest for any corporate Eurobond in 2021 and the
coupon is the second lowest in the company's history. This once
again highlights the quality of our credit and our access to the
capital market. As a result of this successful issuance, our debt
maturity profile is significantly improved, refinancing risk is
further reduced and net liquidity improved as we aim to use the net
proceeds to partially pay back the bond maturing 2022 and pay down
other short-term debt.
Danske Bank, Deutsche Bank, Nordea
Bank and OP Corporate Bank acted as Active Joint Bookrunners
and SEB and Swedbank acted as Passive Joint Bookrunners.
CITYCON OYJ
For further information, please contact:
Eero Sihvonen
Executive VP and CFO
Tel. +358 50 557 9137
eero.sihvonen@citycon.com
Laura Jauhiainen
Vice President, Strategy and Investor Relations
Tel. +358 40 823 9497
laura.jauhiainen@citycon.com
Citycon is a leading owner, manager and developer of mixed-use
centres for urban living including retail, office space and
housing. We are committed to sustainable property management in the
Nordic region with assets that total approximately EUR 4.4 billion. Our centres are located in urban
hubs with a direct connection to public transport. Placed in the
heart of communities, our centres are anchored by groceries,
healthcare and services to cater for the everyday needs of
customers.
Citycon has investment-grade credit ratings from Moody's (Baa3),
Fitch (BBB-) and Standard & Poor's (BBB-). Citycon Oyj's share
is listed in Nasdaq Helsinki.
www.citycon.com
Important regulatory notice
This announcement does not constitute, or form part of, an offer
or invitation to sell or issue, or any solicitation of an offer to
buy or subscribe for, any securities in the United States or any other jurisdiction
nor shall it (or any part of this announcement) or the fact of its
distribution form the basis of, or be relied upon in connection
with, or act as any inducement to enter into, any contract or
commitment. Recipients of this announcement who intend to
purchase any securities are reminded that any such purchase or
subscription must be made solely on the basis of the information
contained in any final form prospectus published in connection with
any such securities, which if and when published will be available
on the website of the Central Bank of Ireland. The
transaction described above and the distribution of this
announcement and other information in connection with the
transaction in certain jurisdictions may be restricted by law and
persons into whose possession any document or other information
referred to herein comes should inform themselves about and observe
any such restriction. Any failure to comply with these
restrictions may constitute a violation of the securities laws of
any such jurisdiction.
This communication is not an offer of securities for sale in
the United States, Australia, Canada, Japan
or any other jurisdiction where to do so would be unlawful.
Neither Citycon Oyj nor Citycon Treasury B.V. has registered, or
intends to register, securities in any of these jurisdictions or to
conduct an offer of securities for sale in any of these
jurisdictions. In particular, no securities of Citycon Oyj or
Citycon Treasury B.V. have been or will be registered under the
U.S. Securities Act of 1933, as amended (the "Securities Act"), and
such securities may not be offered, sold or delivered within
the United States or to, or for
the account or benefit of, U.S. persons (as defined in Regulation S
under the Securities Act) except pursuant to an exemption from, or
in a transaction not subject to, the registration requirements of
the Securities Act and in compliance with any applicable state
securities laws.
This announcement is directed only at (i) persons who are
outside the United Kingdom or (ii)
to investment professionals falling within the definition of
"investment professionals" in Article 19 of the Financial Services
and Markets Act 2000 (Financial Promotion) Order 2005, as amended
(the "Order") or (iii) high net worth companies, and other persons
to whom it may lawfully be communicated, falling within Article
49(2)(a) to (d) of the Order (all such persons in (i), (ii) and
(iii) above together being referred to as "relevant persons").
NOT TO BE RELEASED, PUBLISHED OR DISTRIBUTED, DIRECTLY OR
INDIRECTLY, IN WHOLE OR IN PART IN OR INTO OR TO ANY PERSON LOCATED
IN OR RESIDENT IN THE UNITED
STATES, ITS TERRITORIES AND POSSESSIONS, ANY STATE OF THE UNITED STATES OR THE DISTRICT OF COLUMBIA (TOGETHER THE "UNITED STATES"), AUSTRALIA, CANADA OR JAPAN OR ANY OTHER JURISDICTION IN WHICH THE
DISTRIBUTION OR RELEASE WOULD BE UNLAWFUL.
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