• Unsecured, fixed-rate bond with a nominal value of EUR 500 million
• Strong investor demand for LEG’s inaugural corporate bond issue
• Bond issue further diversifies funding sources
• Proceeds mainly used to refinance existing indebtedness
• Refinancing further decreases average interest costs

LEG Immobilien AG announces the successful placement of an inaugural unsecured, fixed-rate corporate bond with a total nominal amount of EUR 500 million. The bond maturing on 23 January 2024 will bear an annual coupon of 1.25%. In line with LEG’s corporate rating, Moody's Investors Service Limited has assigned a rating of Baa1 for the bond.

The bond was offered to institutional investors after several days of pan-European roadshow and met with strong interest for LEG’s business model and significant investor demand, resulting in a four times oversubscribed order book.

„With the issue of its first corporate bond, LEG further diversifies its funding sources and underscores the company’s ample access to all key financing markets” says Eckhard Schultz, CFO of LEG Immobilien AG.

LEG intends to gain long-term benefit from the attractive terms on the financing markets and from the access to the corporate bond market. The net proceeds of the bond will mainly be used to refinance existing subsidised loans and bank loans, as well as for general corporate purposes.

LEG's average financing costs are expected to drop to less than 2.0% with the company’s average debt maturity remaining at a high level of around 10 years.

HSBC and J.P. Morgan are acting as active bookrunners and BNP Paribas, Morgan Stanley and Société Générale as passive bookrunners on the transaction.

INVESTOR RELATIONS CONTACT:

BURKHARD SAWAZKI

Tel. +49 211 45 68-204
E-Mail: burkhard.sawazki[at]­leg.ag

PRESS CONTACT:

BRITTA MARIA SCHELL

Tel. +49 211 45 68-325
E-Mail: britta.schell[at]­leg-wohnen.de

ABOUT LEG

With around 130,000 rental properties and approximately 350,000 residents, LEG is one of Germany’s leading listed housing companies. The company has eight branch offices in North Rhine-Westphalia, providing personal local contact. LEG generated rental and lease income of around EUR 645 million in the 2015 financial year.