CBRE Investment Management closes second green Eurobond
CBRE Investment Management, on behalf of a fund it sponsors, has issued its second green bond in the euro market. The new EUR500 million senior unsecured green bond has a tenor of eight years, at an all-in coupon of 0.9 per cent and is rated BBB+ by S&P.
This bond follows CBRE Investment Management’s inaugural issuance in January 2021, which raised EUR500 million and marked the first ever issuance directly from a SICAV Structure in the investment grade corporate bond market, as well as the first issuance executed directly from a fund-level entity.
The transaction generated a significantly over-subscribed orderbook which was in excess of EUR1.25 billion from a diversified pool of investors across Europe, the Middle East and Asia, including a substantial percentage of dedicated green-bond or ESG-driven investors.
“To achieve our collective global climate goals, it is essential to unlock the trillions in private finance that are needed to transition towards a net zero economy. We are pleased to have the opportunity to support the mobilisation of green finance in the form of our second green bond,” states Helen Gurfel, Head of Global Sustainability and Innovation for CBRE Investment Management.
To help achieve the ambitious ESG goals of the Fund and CBRE Investment Management’s Sustainability Vision, the fund established a Green Finance Framework which is aligned with the International Capital Markets Association’s Green Bond Principles, Loan Market Association’s Green Loan Principles and reflects requirements from the EU Taxonomy Regulation and Climate Delegated Act. An amount equal to the net proceeds of the notes issue will be used to finance and/or refinance, in whole or in part, new or existing eligible green assets in accordance with the Fund’s Green Finance Framework. The Green Finance Framework has been assessed and approved for accuracy and integrity by Sustainalytics, acting as SPO (Second Party Opinion) provider.
Duco Mook, Head of Treasury & Debt Financing, CBRE Investment Management, comments: “Following our first oversubscribed issuance earlier this year, there continues to be a strong preference from investors for green bonds – reflected in a lower bps margin compared to conventional bonds. CBRE Investment Management’s strong track record and strategy in ESG, combined with the Fund’s credit rating, means we are well positioned to take advantage of this as we issue our second bond in this space.”