Citycon Oyj to issue green capital securities

Citycon Oyj (Citycon) is considering issuance of euro-denominated green capital securities (Capital Securities) up to EUR400 million in vaue. The Capital Securities will be offered mainly to European, including Nordic, institutional investors through a book building process.

The issuance of the Capital Securities is expected to take place in November, subject to market conditions. Citycon will apply for the Capital Securities to be admitted to the Official List of the Irish Stock Exchange, trading as Euronext Dublin, and to trading on its regulated market.
The Capital Securities will be subordinated to certain other debt obligations and will be treated as equity in Citycon's consolidated financial statements prepared in accordance with IFRS. The Capital Securities will not confer on their holders the rights of a shareholder nor will they dilute the holdings of the current shareholders.
An amount equal to the net proceeds from any potential issuance of Capital Securities is intended to be allocated to the (re)financing of new or existing assets, developments or projects that meet Citycon's green financing framework requirements. Citycon expects to apply a portion of the net proceeds of any potential issue to purchasing certain euro-denominated bonds issued by the Citycon Group which are validly tendered and accepted for purchase in accordance with the tender offers launched by Citycon on 7 November 2019, to the repayment and repurchase of the existing indebtedness of the Citycon Group, including purchasing certain NOK-denominated bonds, and for general corporate purposes (including investments, acquisitions and development projects).
Citycon's green financing framework reflects practices that support the transition to a sustainable and low carbon economy through the development of green assets. Proceeds allocated in accordance with the framework will be used to finance or re-finance eligible green assets in categories green buildings, energy efficiency, renewable energy or waste management.
Citycon has mandated Citigroup Global Markets Limited, Danske Bank A/S, Swedbank AB (publ) and UBS Europe SE as joint bookrunners. Citycon will announce further information after the placement of the Capital Securities.
Citycon is a leading owner, manager and developer of urban, grocery-anchored shopping centres in the Nordic region, managing assets that total approximately EUR4.4 billion. Citycon is the number one shopping centre owner in Finland and among the market leaders in Norway, Sweden and Estonia. Citycon has also established a foothold in Denmark.
Citycon has investment-grade credit ratings from Moody's (Baa3) and Standard & Poor's (BBB-). Citycon Oyj's shares are listed on Nasdaq Helsinki Ltd. stock exchange.