Colonial has placed a green bond issue for €800 million, maturing in 2031. The coupon has been set at 3.125%, equivalent to a yield of 3.33%, although the effective interest rate stands at 2.73% thanks to the company's pre-hedging strategy. The transaction has a projected rating of BBB+ from S&P.
The funds obtained will be used to refinance the bond maturing in November 2025, to cover investments already made in science & innovation and, in part, to strengthen available liquidity. With this, the company is replacing short-term debt with a new six-year maturity. Demand exceeded the volume issued by more than 2.2 times, with participation from both domestic and international institutional investors.
The group's financial structure remains solid, with ratings of BBB+ from Standard & Poor's and Baa1 from Moody's. At the end of June 2025, it had liquidity of €2.359 billion, an LTV of 36.6% and a spot cost of gross debt of 1.78%, with 100% of the debt at a fixed rate or hedged.
This transaction is in addition to the €500 million green bond issued in January, also maturing in 2030, which was oversubscribed 8.1 times and achieved an effective rate of 2.75% after hedging. In addition, in the first quarter of the year, Colonial obtained a recurring net profit of €55 million, 16% more than in 2024, driven by growth in rents and new investments in the science and innovation segment.
Since 2022, the company has converted all its issues into green bonds after publishing its first financing framework in this area. In November 2024, it updated this framework by incorporating more demanding indicators, in line with market practice. Currently, 99% of its portfolio has BREEAM and LEED certifications.
