Colonial has closed a €500 million green bond issue maturing in 2030. These bonds, listed on Euronext Dublin, offer a coupon of 3.25%, but through the pre-hedging strategy implemented by the company, the final effective rate is reduced to 2.75%. The expected rating of the issue is BBB+ by S&P.
The objective of this operation is to refinance debt maturing in the coming months, replacing short-term commitments with other five-year commitments. The success of the placement, with an oversubscription of 8.1 times, reflects the confidence of institutional investors.
Throughout 2024, the company has strengthened its financial position through divestments and balance sheet protection measures, reducing its net debt by 9% through September to EUR 4,414 million. This effort has enabled the company to improve its LTV ratio to 36.5% and maintain its liquidity, with EUR 3.4 billion available at the end of the third quarter. This reserve guarantees coverage of its maturities until 2028.
In November 2024, the company updated its Green Funding Framework, introducing indicators aligned with current market practices. Since 2022, it has transformed its bonds into green instruments, aimed at financing assets with a positive environmental impact.
Colonial has received outstanding sustainability ratings. According to Sustainalytics, it occupies a relevant position in the IBEX-35, while it has achieved significant scores in GRESB and CDP. In addition, its portfolio has BREEAM and LEED certifications for all its assets.
