Carmila, the third-largest listed owner of commercial property in Europe, has successfully raised €300 million ($334 million) through its first green bond, set to mature on 25 January 2032, with a fixed annual coupon of 3.875%. The bond was issued at a spread of 160 basis points above the benchmark rate, with no premium.
The issuance saw significant demand, being nearly seven times oversubscribed and drawing strong interest from both French and international ESG investors. This marks a significant step for Carmila in expanding its investor base and optimizing its financial structure by extending its debt maturity and reducing the overall cost of borrowing.
The funds from this bond will be used to finance environmentally sustainable assets that meet the criteria outlined in Carmila’s “Green Bond Framework,” published in October 2022. Eligible projects must meet stringent environmental criteria, such as achieving BREEAM “Very Good” or “Excellent” certification, ensuring transparency and sustainability in their development.
In conjunction with the green bond issue, Carmila has also launched a partial buyback of existing bonds set to mature in May 2027, March 2028, October 2028, and April 2029. The tender period for the buyback will remain open until 23 September 2024.