The industrial and logistics specialist is back in the public debt market after a 2-year hiatus. Conditions have not been favourable for public property companies to raise capital this way, however they are now returning, at least for logistics real estate groups.
For P3's bond, more than 150 investors came in. Advisers were Deutsche Bank AG, ING Bank, J.P. Morgan, CA-CIB and SMBC Nikko as active joint bookrunners, while BNP Paribas and HSBC acted as passive joint bookrunners.
The 6-year bond, issued under P3 Group Euro Medium Term Note (EMTN) Programme, will be listed on the official list of the Luxembourg Stock Exchange and traded on the Euro MTF Market. The loan is being used to refinance eligible green assets.
Ben Helsing, P3 group treasurer and head of debt investor relations, said: 'We are pleased to have seized favourable conditions in the public debt market with this successful return to the market after a 2-year break. The very strong demand underscores investors’ confidence in P3. With an over €3.5bn order book at its peak and a final book over 5 times oversubscribed, we achieved an attractive credit spread of 207 bps".
He added: 'It has been interesting to discuss P3‘s "credit story" with bond investors and encouraging to hear that logistics continues to be one of the sub-segments within real estate favored by bond investors due to fundamentally strong demand trends. I would like to extend my thanks to all more than 150 investors for the trust in P3 and to the arrangers and advisors for great support in the transaction".
Frank Pörschke, CEO, added: 'It positions P3 for ongoing success in the dynamic logistics real estate market as we continue our growth initiatives and strengthen our capital structure. The funds raised will play an important role in supporting our profitable growth as we expand our property portfolio, which currently exceeds €9 bn in 11 countries.'
Thilo Kusch, CFO, said the company had signed around €2 bn of new bank debt in 2023.