LEG issued a €500m 11-year bond with a coupon of 1.00%. The bond met with strong interest from investors, as reflected by an orderbook which peaked at an oversubscription of 2-times. Most of the demand came from European institutional investors.
The proceeds of the offering will be used for general corporate purposes including acquisitions.
“The placement of our corporate bond underlines the high level of trust of investors in our business model and highlights LEG’s excellent capital markets access,” explains Susanne Schröter-Crossan, CFO of LEG Immobilien SE.
After the issue, assuming a valuation uplift for the second half of 2021 and taking into account all units that have been acquired so far and will transfer to LEG by the end of Q4 2021, the pro-forma LTV at year end 2021 stands at c. 41.6%. LEG’s key leverage figure therefore remains below its maximum target of 43%.