Atrium European Real Estate has priced a €350m (£304m) green hybrid bond.
The deal is the first such issuance for the shopping centre owner – hybrid issuances act as subordinated debt with some characteristics of equity – and attracted an order book of €1.2bn. Atrium will use the bonds to invest in rental residential assets under its green financing framework.
Liad Barzilai described the issuance as “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 notes priced with a coupon of 3.6% until their first reset date and will first be callable in August 2026.
The deal was run by Goldman Sachs and HSBC as global co-ordinators. The banks were joined by Citigroup, Deutsche Bank, ING and Raiffeisen Bank International as joint bookrunners.
• EG’s podcast on the green finance market, Inside real estate’s green finance push, will be out on Wednesday.
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