Vesteda obtains investment grade corporate credit rating and successfully issues debut €300m 5 year bond
Vesteda recently received a BBB corporate credit rating with ‘outlook stable’ from Standard & Poor’s. The investment grade rating confirms the high quality of the Vesteda property portfolio and the fund’s conservative financing structure.
Armed with the corporate credit rating, Vesteda has set up a Euro Medium Term Notes (EMTN) programme in anticipation of tapping the capital market. Today, Vesteda successfully issued its debut corporate bond under its EMTN programme. ABN AMRO, BNP Paribas and Rabobank acted as arrangers and bookrunners for the Vesteda bond issue. The bond is listed on Euronext Amsterdam.
The € 300 million bond has a term of five years and a coupon rate of 1.75%. The bond was more than two times oversubscribed.
On 8 May Vesteda already closed a € 100 million private placement transaction with a term of seven years with Pricoa, a subsidiary of US insurance group Prudential.
“We are very pleased that we have successfully increased the diversification of our financing structure through these transactions. Accessing the capital market with our investment grade credit rating is a significant step towards a flexible corporate financing structure, aimed at diversification and a further lowering of financing costs,” says Gertjan van der Baan, CEO Vesteda.
Next to the BBB corporate credit rating, the AAA-rating of the remaining CMBS programme remains unchanged. The AAA-rating has recently been confirmed by the rating agencies Standard & Poor’s, Moody’s and Fitch Ratings.
Vesteda is an enterprising investor with a clear focus on the Dutch residential real estate market. Vesteda invests funds for institutional investors, most of which are pension funds. Vesteda had total capital in excess of € 3.8 billion invested in real estate at year-end 2013. The company’s rental portfolio stood at a total of 23,791 homes at the end of 2013. Vesteda’s key investment regions are the Randstad urban conurbation and the Noord Brabant province.