16.03.2021

LEG Immobilien SE successfully places corporate bond with nominal value of EUR 500 million

  • Unsecured, fixed-rate bond with nominal value of EUR 500 million, coupon of 0.875% and maturity of 12 years
  • LEG corporate bond meets strong investor demand
  • Proceeds to be used primarily to refinance existing liabilities and for general company purposes
  • Refinancing will lead to increase in average term and further reduction in average interest costs

LEG Immobilien SE announces the successful placement of an unsecured, fixed-rate corporate bond with a nominal value of EUR 500 million. The bond matures on 30 March 2033 and carries a coupon of 0.875% p.a. It was offered for sale to institutional investors under the company’s EUR 5 bn debt issuance programme. The bond and LEG’s business model met a high level of interest from investors and strong demand, as reflected in a subscription level of 2.2-times. Most of the demand came from investors form Germany, the United Kingdom, France and Scandinavia.

“The placement of our corporate bond results optimizes our financing profile further and highlights LEG’s excellent access to all major financing markets,” explains Susanne Schröter-Crossan, CFO of LEG Immobilien SE. ‘We are delighted by the strong interest from investors, which shows the high level of trust in the strength and solidity of our business model,” adds Schröter-Crossan.

The net proceeds from the offering will primarily be used to refinance existing secured loans and for general company purposes.

As a result of this refinancing, a further reduction in LEG’s average financing costs to around 1.3% is anticipated, with the average maturity increasing to 7.5 years.

The transaction was accompanied by BofA Securities, Commerzbank, Deutsche Bank and J.P. Morgan AG as active bookrunners as well as BNP Paribas and HSBC as passive bookrunner.



About LEG
With around 145,000 rental properties and approximately 400,000 residents, LEG is one of Germany’s leading listed housing companies. The company has seven branch offices in its home state of North Rhine-Westphalia, and is represented by personal local contacts at locations in other states in western Germany. LEG generated income of around EUR 861 million from its core rental and lease business in the 2020 financial year. As part of the new construction campaign it launched in 2018, LEG wishes to make a social contribution towards creating both privately financed and publicly subsidised housing, and to build or acquire at least 500 new apartments per year from 2023 onwards.


Investor Relations contact:
Frank Kopfinger
Tel. +49 211 45 68-550
E-mail: frank.kopfinger@leg-se.com


Press contact:
Sabine Jeschke
Tel. +49 211 45 68-325
E-mail: sabine.jeschke@leg-wohnen.de


Disclaimer
This publication constitutes neither a solicitation to buy nor an offer to sell securities. To the extent that we express forecasts or expectations or make forward-looking statements in this document, these statements can entail known and unknown risks and uncertainties. These statements reflect the intentions, opinions or current expectations and assumptions of LEG Immobilien SE. The forward-looking statements are based on current planning, estimates and forecasts, which LEG Immobilien SE has made to the best of its knowledge, but that are not a statement on their future accuracy. Actual results and developments can therefore differ materially from the expectations and assumptions expressed.
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