CITYCON OYJ Stock Exchange Release 4 March 2021 at 18:30 hrs
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.
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.
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").