Citycon Oyj successfully prices EUR 350 million green Capital Securities
CITYCON OYJ Inside information 27.5.2021 at 19:10 hrs
NOT TO BE RELEASED, PUBLISHED OR DISTRIBUTED, DIRECTLY OR INDIRECTLY, IN WHOLE OR IN PART IN OR INTO OR TO ANY PERSON LOCATED IN OR RESIDENT IN THE UNITED STATES, ITS TERRITORIES AND POSSESSIONS, ANY STATE OF THE UNITED STATES OR THE DISTRICT OF COLUMBIA (TOGETHER THE "UNITED STATES"), AUSTRALIA, CANADA OR JAPAN OR ANY OTHER JURISDICTION IN WHICH THE DISTRIBUTION OR RELEASE WOULD BE UNLAWFUL
Citycon Oyj (“Citycon”) prices EUR 350 million green capital securities (“Capital Securities”). The Capital Securities will bear interest at a fixed rate coupon of 3.625 per cent per annum until the reset date 10 September 2026 (“First Reset Date”) and thereafter, the interest rate will reset on each fifth (5th) anniversary. The Capital Securities do not have a specified maturity date but Citycon is entitled to redeem the Capital Securities on any date in three months up to and including the First Reset Date, and subsequently, on each annual interest payment date. The issue date is on 4 June 2021.
Citycon has applied for the Capital Securities to be admitted to the official list of Euronext Dublin (the “Official List”) and to trading on its Global Exchange Market (the “Global Exchange Market”), which is the exchange regulated market of Euronext Dublin.
The Capital Securities are subordinated to certain other debt obligations and are treated as equity in Citycon’s consolidated financial statements prepared in accordance with IFRS. The Capital Securities do not confer on their holders the rights of a shareholder nor do they dilute the holdings of the current shareholders.
An amount equal to the net proceeds from the issuance of Capital Securities will be allocated to the financing and refinancing of new and existing assets, developments or projects that meet Citycon’s green financing framework requirements and in line with Citycon’s diversification through densification strategy which aims at increasing the share of residential and office space in its portfolio. The issuance will strengthen the balance sheet and demonstrates Citycon’s commitment to improving its investment grade credit ratings.
Citycon’s green financing framework reflects practices that support the transition to a sustainable and low carbon economy through the development of green assets. Proceeds allocated in accordance with the framework will be used to finance or re-finance eligible green assets in categories green buildings, energy efficiency, renewable energy or waste management.
CFO and Executive Vice President Eero Sihvonen: “We are pleased with the successful issuance. The demand for the Capital Securities was very strong with an order book reaching around one billion euros and approximately 150 investors, and therefore we were able to tighten the pricing and increase the size of the issue to EUR 350 million during the book building process. The Capital Securities will be issued under Citycon’s Green Financing Framework, which integrates Citycon’s sustainability targets with our financing activities and further highlights Citycon’s profile as a forerunner in sustainability. In addition to strengthening our balance sheet, the issuance brings flexibility to execute on our transformation strategy and enables the diversification of our portfolio both organically and through potential acquisitions.”
Citigroup Global Markets Limited, Danske Bank A/S, Deutsche Bank Aktiengesellschaft, Goldman Sachs International, Nordea Bank Abp and Swedbank AB (publ) acted as joint bookrunners.
CITYCON OYJ
For further information, please contact:
Eero Sihvonen
Executive VP and CFO
Tel. +358 50 557 9137
eero.sihvonen@citycon.com
Laura Jauhiainen
Vice President, Strategy and Investor Relations
Tel. +358 40 823 9497
laura.jauhiainen@citycon.com
Citycon is a leading owner, manager and developer of mixed-use centres for urban living including retail, office space and housing. We are committed to sustainable property management in the Nordic region with assets that total approximately EUR 4.4 billion. Our centres are located in urban hubs with a direct connection to public transport. Placed in the heart of communities, our centres are anchored by groceries, healthcare and services to cater for the everyday needs of customers.
Citycon has investment-grade credit ratings from Moody's (Baa3), Fitch (BBB-) and Standard & Poor's (BBB-). Citycon Oyj’s share is listed in Nasdaq Helsinki.
www.citycon.com
Important regulatory notice
This announcement does not constitute, or form part of, an offer or invitation to sell or issue, or any solicitation of an offer to buy or subscribe for, any securities in the United States or any other jurisdiction nor shall it (or any part of this announcement) or the fact of its distribution form the basis of, or be relied upon in connection with, or act as any inducement to enter into, any contract or commitment. Recipients of this announcement who intend to purchase any securities are reminded that any such purchase or subscription must be made solely on the basis of the information contained in any final form listing particulars published in connection with any such securities, which if and when published will be available on the website of Euronext Dublin. The transaction described above and the distribution of this announcement and other information in connection with the transaction in certain jurisdictions may be restricted by law and persons into whose possession any document or other information referred to herein comes should inform themselves about and observe any such restriction. Any failure to comply with these restrictions may constitute a violation of the securities laws of any such jurisdiction.
This communication is not an offer of securities for sale in the United States, Australia, Canada, Japan or any other jurisdiction where to do so would be unlawful. Citycon Oyj has not registered, or does not intend to register, securities in any of these jurisdictions or to conduct an offer of securities for sale in any of these jurisdictions. In particular, no securities of Citycon Oyj have been or will be registered under the U.S. Securities Act of 1933, as amended (the "Securities Act"), and such securities may not be offered, sold or delivered within the United States or to, or for the account or benefit of, U.S. persons (as defined in Regulation S under the Securities Act) except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and in compliance with any applicable state securities laws.
MiFID II and UK MiFIR professionals/ECPs-only - Manufacturer target market (MiFID II and UK MiFIR product governance) is eligible counterparties and professional clients only (all distribution channels). No PRIIPs key information document (KID) or UK PRIIPs KID has been prepared as not available to retail in the EEA or the UK, respectively.
This announcement is directed only at (i) persons who are outside the United Kingdom (ii) to investment professionals falling within the definition of "investment professionals" under Article 19 of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005, as amended (the “Order”) or (iii) high net worth companies, and other persons to whom it may lawfully be communicated, falling within Article 49(2)(a) to (d) of the Order (all such persons in (i), (ii) and (iii) above together being referred to as "relevant persons").
The Capital Securities may not be offered or sold, or be made the subject of an invitation for subscription or purchase, whether directly or indirectly, to persons in Singapore other than (a) to an institutional investor (as defined in section 4a of the Securities and Futures Act (chapter 289 of Singapore), as modified or amended from time to time (the “SFA”)) pursuant to section 274 of the SFA, (b) to a relevant person (as defined in section 275(2) of the SFA) pursuant to section 275(1) of the SFA, or any person pursuant to section 275(1a) of the SFA, and in accordance with the conditions specified in section 275 of the SFA, or (c) otherwise pursuant to, and in accordance with the conditions of, any other applicable provision of the SFA.
A rating is not a recommendation to buy, sell or hold securities and may be subject to revision, suspension or withdrawal at any time by the assigning rating organisation. Similar ratings for different types of issuers and on different types of securities do not necessarily mean the same thing. The significance of each rating should be analysed independently from any other rating.