CITYCON OYJ Stock Exchange Release 4 December 2024 at 18:10 hrs
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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 5.25-year senior unsecured fixed rate EUR-denominated Bond matures on 11 March 2030 and pays a fixed coupon of 5.000%.
The Bond is issued under Citycon Treasury B.V.’s EUR 2,500,000,000 EMTN programme dated 29 November 2024. 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 Standard & Poor's in line with the corporate rating of Citycon.
The net proceeds from the Bond will be used to repurchase certain NOK denominated bonds issued by the Citycon Group which are validly tendered and accepted for purchase in accordance with the tender offer launched by Citycon on 3 December 2024. Additionally, remaining net proceeds from the Bond will be used to repay existing indebtedness and for such general corporate purposes of the group that meet Citycon’s green financing framework requirements.
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.
“We are pleased with the success of this placement. The demand for the bond was extremely strong with an orderbook almost ten 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 were also able to tighten the initial thought price of the bond by -55 basis points. 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 and refinancing risk is further reduced as we will use the net proceeds to repay near-term maturing debt, including the NOK denominated bonds maturing in 2025”, says Eero Sihvonen, CFO of Citycon.
Citycon Group has mandated Deutsche Bank and Nordea as global coordinators and Danske Bank, OP Corporate Bank, SEB and Swedbank as joint bookrunners.
CITYCON OYJ
For further information, please contact:
Eero Sihvonen
CFO and Member of the Board of Directors
Contact requests through:
Anni Torkko
Investor Relations Manager
Tel. +358 45 358 0570
anni.torkko@citycon.com
Citycon is a leading owner, manager and developer of mixed-use real estate featuring modern, necessity-based retail with residential, office and municipal service spaces that enhance the communities in which they operate. Citycon is committed to sustainable property management in the Nordic region with assets that total approximately EUR 4.0 billion. Our centres are located in urban hubs in the heart of vibrant communities with direct connections to public transport and anchored by grocery, healthcare and other services that cater to the everyday needs of customers.
Citycon has investment-grade credit rating from Standard & Poor's (BBB-). Citycon’s shares are listed on Nasdaq Helsinki Ltd.
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").