On September 27, 2021, logistics property company CTP announced it raised a total of EUR 1 billion under its EUR 8 billion EMTN program.
According to the company, the issue included a EUR 500 million five-year tranche, a EUR 500 million ten-year tranche and a concurrent EUR 150 million capped tender offer on the EUR 650 million senior notes due October 2025. The total demand for the issue was around EUR 3.5 billion. At pricing, the five-year tranche’s annual coupon was fixed at a rate of 0.625%, while the ten-year tranche annual coupon was fixed at 1.50%. The 10-year tranche marks CTP’s longest tenor to date.
“In our third visit to the bond market in 2021, CTP was able to successfully execute another dual tranche issuance. Once more we were able to attract significant demand from both existing and new institutional investors, with over 100 investors participating. Proceeds from this issue will be used to pre-fund a significant part of the development pipeline in 2022, while the capped tender offer on the October 2025 notes allowed us to reduce our cost of debt, whilst preserving the liquidity of a benchmark size bond. We also further add data points for our debt-yield curve, which now consists of seven different tenors with ten-year being the longest tenor,” noted CTP CFO Richard Wilkinson.