Atrium raises EUR350m for green hybrid bond issuance

Atrium European Real Estate Limited (Atrium) has priced a EUR350 million inaugural green hybrid bond under its EMTN Programme.

The Notes attracted strong demand with an orderbook of EUR1.2 billion and were placed with a broad range of European and international institutional debt investors, including those investors with a specific focus on ESG/sustainable investment portfolios. The Notes carry a coupon of 3.625 per cent until the first reset date and the issue price of the Notes is 98.197 per cent. The Notes will be callable for the first time on 4 August 2026. The issue date is expected to be on or around 4 May 2021.
 
An amount equal to the net proceeds of the offering will be allocated to finance or refinance Eligible Projects and/or Assets including residential for rent as defined in Atrium’s Green Financing Framework. Sustainalytics has provided a Second Party Opinion on Atrium’s Green Financing Framework confirming its alignment with the ICMA Green Bond Principles and LMA Green Loan Principles.
 
Following the issuance, the Company’s reported Net LTV will be 27 per cent, with the long-term target remaining unchanged at 40 per cent.
 
Atrium will apply for the Notes to be listed on the official list of the Luxembourg Stock Exchange and admitted to trading on the Luxembourg Stock Exchange’s regulated market.
 
Liad Barzilai, Chief Executive Officer of Atrium Group, says: “Atrium’s successful first Hybrid green bond issuance, which was more than three times oversubscribed, is a thorough endorsement of our ongoing strategy to diversify into residential for rent in our key geographies of Poland and the Czech Republic, as well as to the appeal of our ongoing Green Financing Framework to investors. The strong demand and attractive pricing enabled us to increase the aggregated amount to EUR350 million and the issuance will allow us to accelerate both our  move into residential and our ESG strategy, whilst further strengthening the Company’s Investment Grade credentials following Moody’s rerating of Atrium to Baa3 stable last week.”
 
The Notes are expected to be rated Ba2 by Moody’s and BB+ by Fitch and each of Moody’s and Fitch have assigned 50 per cent equity credit to the Notes.
 
Goldman Sachs International and HSBC acted as global coordinators and Citigroup, Deutsche Bank, Goldman Sachs International, HSBC, ING and Raiffeisen Bank International acted as joint bookrunners on the transaction.