Over EUR 1 Billion in 2 Months – CTP’s Green Bonds in High Demand with Investors

CTP, one of Europe’s top-five logistics property companies and the largest logistics property owner-developer in CEE, has successfully issued its second Green bond for EUR 400 million, following the company's inaugural EUR 650 million issue in October. The proceeds from both bond sales will be used to finance a portfolio of Eligible Green Assets. CTP maintains a strong commitment to sustainability and targets carbon neutral operations by end 2021.

CTP B.V. (ticker CTPBVV) successfully issued its second Green bond for EUR 400 million on 27 November 2020. The 3-year bond, carrying a fixed annual coupon rate of 0.625%, received a strong reception from investors and was several times oversubscribed, with a peak order book in excess of EUR 1 billion. CTP’s inaugural Green bonds issue on 1 October 2020 raised EUR 650 million of new financing, making it the largest debut issuance by a CEE real estate company. CTP chose to issue Green bonds following its 2019 commitment to certify its entire portfolio of logistics and industrial projects to the BREEAM Very Good standard and higher.

– CTP was in the right place at the right time to be able to successfully execute its second Green bonds. CTP’s robust credit fundamentals are illustrated in our third quarter 2020 results, which enabled us to successfully mobilise demand with both existing as well as new institutional investors. Given our strategy to migrate our debt funding to a largely unsecured debt platform, we saw the opportunity to issue a bond with a maturity of three years. This establishes a new data-point for our debt-yield curve, whilst at the same time maintaining the consolidated tenor of our debt profile, as we will use part of the proceeds to prepay bank debt with a shorter term. I am particularly pleased with the fixed annual coupon of 0.625% for the three-year tenor. Logistics properties continue to benefit from strong fundamentals, particularly in CEE, which has some of the strongest economic fundamentals in Europe – Richard Wilkinson, CFO of CTP.

The new debt issue achieved broad institutional distribution, selling primarily to asset managers (66%), with the bulk of demand coming from the UK/Ireland (34%), BeNeLux (22%), the DACH region (18%), France (14%) and Iberia/Italy (9%).

– For the second time in a row, we are very pleased by the depth and breadth of support for this CTP issuance. Our second Green bonds issue will further decrease the cost of CTP’s debt – Jan Evert Post, Head of Investor Relations at CTP, adds.

The timing of the issue proved to be quite positive, allowing CTP to achieve attractive pricing and to upsize the issue by EUR 50 million from the original guidance of EUR 350 million.

The newly issued Green bond matures on 27 November 2023 and carries a fixed annual coupon at the rate of 0.625 percent. CTP B.V. bonds arebrated Baa3 (Stable) by Moody’s and BBB- (Stable) by S&P Prague.

The securities referred to herein may not be sold in the United States absent registration or an exemption from registration under the U.S. Securities Act of 1933, as amended. This communication does not constitute an offer of the Securities to the public in the United Kingdom. No prospectus has been or will be approved in the United Kingdom in respect of the Securities. This communication is being distributed to and is directed only at (i) persons who are outside the United Kingdom or (ii) persons who are investment professionals within the meaning of Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (the “Order”) and (iii) high net worth entities, and other persons to whom it may lawfully be communicated, falling within Article 49(2)(a) to (d) of the Order (all such persons together being referred to as “Relevant Persons”). Any investment activity to which this communication relates will only be available to and will only be engaged with, Relevant Persons. Any person who is not a Relevant Person should not act or rely on this document or any of its contents.

About CTP Group

CTP Group is a commercial real estate owner, developer and manager providing complete services in the logistics real estate sector. The Group specializes in the construction, ownership, and management of customer-oriented high-tech business/logistics parks for leading international and domestic companies that are strategically investing in new or expanded projects. CTP Group is the largest full-service owner-developer of prime industrial and logistics property in the CEE. The Group’s core portfolio consists of 6 million square meters of Class A real estate in over 100 strategic locations in six CEE countries: the Czech Republic, Slovakia, Hungary, Serbia, Romania, and Poland. As part of its long-term commitment to building and owning the most efficient and sustainable assets, CTP already has over 90% of its logistics/industrial portfolio BREEAM certified ("Very Good" or "Excellent") and plans to be carbon neutral in its operations by end-2021.

CTP invest d.o.o.

CTP

Moody

S and P

Richard Wilkinson

Jan Evert Post

development of portfolio of Green Buildings

emission of Green Bonds

green bonds

inaugural green bonds

logistics real estate

BREEAM certificate

issuing of green bonds

industrial parks