Vesteda successfully issues €300 million 7 year bond with a 2.5% coupon


Today, Vesteda successfully issued its second corporate bond under its EMTN programme. The €300 mln bond has a term of seven years and a coupon of 2.5%. The bond was significantly oversubscribed. ABN AMRO, BNP Paribas and Rabobank acted as arrangers and bookrunners and AXECO acted as financial advisor to the issuer. The bond will be listed on Euronext Amsterdam.

This transaction follows the €600 mln equity investment by international institutional investors in April and the new €600 mln senior unsecured revolving credit facility concluded in June of this year. The proceeds of the new bond issue will be used to refinance a €300 mln bridge facility maturing at the end of this year. As a result, Vesteda has addressed all its refinancing obligations until 2018.

“We are very pleased that we have successfully issued our second bond under our EMTN programme. Our capital structure is further optimised, our future interest costs are reduced and the duration of our loan capital is significantly increased. Proven access to international capital markets for both equity and debt contributes to our growth ambition and enhances our profitability whilst maintaining our attractive low risk profile”, says Vesteda CFO Hélène Pragt.

Vesteda has a BBB rating, which has recently been confirmed by the rating agency Standard & Poor’s. A similar rating is anticipated for the new bonds.

About Vesteda

Vesteda is an investor with a clear focus on the Dutch residential real estate market. Vesteda invests funds for institutional investors, including pension funds and insurers. Vesteda has total capital of approx. €3.6 billion invested in real estate. The company’s rental portfolio stands at a total of around 23,000 units. Vesteda’s key investment regions are the Randstad urban conurbation and the Noord Brabant province. In 2014, Vesteda generated a net result of €136 million, with more than 200 employees.