Dentons advises CPI Property Group on EUR750 million green bond issuance and tender offer

London—Dentons has advised CPI Property Group (CPI), the leading owner of income-generating real estate in the Czech Republic, Berlin and the Central and Eastern Europe (CEE) region, on a successful tender offer of outstanding bonds and the issue of EUR750 million 2.75% Notes due 2026 under CPI's EUR8 billion Euro Medium Term Note Programme.

The Notes were issued as green bonds under CPI's recently updated EMTN Programme and part of the proceeds of the issuance of the Notes was used towards the redemption of CPI's tendered debt. Credit Suisse Securities (Europe) Limited, Deutsche Bank AG, HSBC Bank plc, Nomura International plc and Unicredit Bank AG acted as Joint Lead Managers on the issuance of the Notes. 

The rationale for the tender offer, which invited holders of its outstanding EUR600 million 1.450 per cent. Senior Notes due 2022, USD450 million 4.750 per cent. Senior Notes due 2023 and EUR825 million 2.125 per cent. Senior Notes due 2024 to tender their Notes for purchase by CPI for cash, was to extend CPI's debt maturity profile and to reduce its leverage. Credit Suisse Securities (Europe) Limited, Deutsche Bank AG, London Branch, and HSBC Bank plc acted as the dealer managers on the tender offer.

This transaction comes against the backdrop of the COVID-19 pandemic, which has had a significant impact on the global economy and the economies in which CPI operates. Following a detailed asset-by-asset analysis of the impact of COVID-19, CPI continues to expect meaningful growth during 2020, facilitated, in part, by its proactive management of its debt profile. 

Nick Hayday, partner in Dentons' Capital Markets practice in London who led on the transaction, said, "This transaction represents Dentons' continuing strength in delivering high quality advice on green bond issues and liability management exercises and builds on our presence in Central and Eastern Europe. The transaction also demonstrates Dentons' enduring association with, and commitment to, CPI, which is a very exciting and dynamic client. It was a real pleasure to assist CPI and the banks on this transaction in volatile markets."

This is CPI's third green bond issuance on which Dentons has advised, following the first in 2019 which made CPI the first real estate group to issue green bonds in its region.

Dentons acted as English law and Luxembourg law counsel to CPI. The Dentons London-based Capital Markets team was led by Nick Hayday and assisted by associate Moeen Qayum and trainee Jessica Matheret, while Luxembourg-based counsel Olivier Lesage and partner Stéphane Hadet provided Luxembourg law advice.

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