Vesteda successfully issues €500 million 8 year bond with a 2.0% coupon
Yesterday, Vesteda successfully issued its third corporate bond under its €2 billion EMTN programme. The €500 million benchmark size bond has a term of eight years and a coupon of 2.0%. The bond was more than two times oversubscribed. ABN AMRO, BNP Paribas, Deutsche Bank 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 acquisition of a €1.5 billion Dutch residential real estate portfolio from financial services company NN Group. Proceeds of the bond will be used to refinance the bridge facility related to this transaction as well as for general corporate purposes. As a result of the €500 million bond issue and the preceding amend and extend transaction of Vesteda’s €700 million senior unsecured revolving credit facility which was concluded in March of this year, Vesteda has extended its weighted average maturity to over 6 years and further reduced its average cost of debt.
“We are very pleased that we have successfully issued our first €500 million bond under our EMTN programme. In line with our funding strategy this transaction further strengthens our capital structure, reduces our cost of capital and improves our debt maturity profile”, says Vesteda CFO Frits Vervoort.
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.
Vesteda is a residential investor and landlord that focuses on sustainable and affordable homes in the mid rental segment. Vesteda invests funds for institutional investors, such as pension funds and insurance companies. The portfolio consists of nearly 28,000 residential units with a total value of 9 billion euro. The homes are mainly located in economically strong regions and core urban areas in the Netherlands.