Covivio Issues €500 Million in European Green Bonds

Covivio has successfully placed €500 million in European Green Bonds, with a maturity set for July 2033. The bonds were nearly thrice oversubscribed, highlighting investors' confidence in Covivio's creditworthiness. This marks the company's second issuance under the European Green Bond format, cementing its pioneering position in the real estate green bond market.

The bonds carry a 4.1% investor coupon, with a 105 basis point spread over seven years. Covivio's strong hedging allows for an effective average cost of 2.8%. Proceeds will enhance the company’s balance sheet, extending debt maturities to 4.9 years, and improving liquidity to €2 billion while maintaining diverse funding sources.

Standard & Poor's affirmed Covivio’s BBB+ rating with a stable outlook in April, citing the strength of its business model and financial policies. The bonds will be traded on Euronext Paris, with expected settlement on July 29, 2026.