In January 2022, P3 established a Euro Medium Term Note (EMTN) programme that enables bond financing to be raised. We issued €1bn of Green Bonds to high demand on the Luxembourg Stock Exchange.
Sustainability continues to be a priority for P3 and Green Bonds represent a great way to align our environmental goals with our funding activities. The proceeds of the issue are used to finance and refinance existing and new green buildings, projects and investments, thereby making our warehouses even more environmentally friendly, and through that, contributors to decarbonisation.
We have strong growth ambitions, and the bond markets are a natural source of funding for a business of our size. Issuing Green Bonds aligns our environmental goals and growth ambitions.
Within a few hours of launching the programme, we were oversubscribed to the tune of €1.7bn of orders from around 160 high-quality investors. That’s a very good level, especially for a debut issuer. Usually, it’s necessary to build the investor base over time, but for this we had high interest straight away.
We are very happy with this outcome, especially because the markets were very busy at the time, so there was some uncertainty about what the level of appetite would be. We are happy we got this kind of response from investors. We believe P3 is in the ‘sweet spot’ of what investors like; stable, recurring cash flows, low credit risk and a strong owner who supports our independent growth ambitions. We have more financing to do, and plan to be a repeat issuer going forward. We are just starting this journey with bond investors.