Luxembourg, 7th February 2024
P3 Group S.àr.l. (“P3”) is pleased to announce it has closed on its second successful senior unsecured Green Bond issuance, totaling EUR 600 million. The transaction underscores P3's access to capital at competitive terms, and with this, P3 has now signed over EUR 5 billion new debt since its new funding strategy was implemented two years ago. The 6-year bond, issued under P3 Group S.àr.l.'s Euro Medium Term Note ("EMTN") Programme, will be listed on the official list of the Luxembourg Stock Exchange and traded on the Euro MTF Market, featuring a fixed coupon of 4.625%. It is rated BBB by S&P, in line with the corporate rating.
Frank Pörschke, CEO of P3, commented: “This strategic transaction solidifies P3 as a reliable and sustainable player in the investment-grade real estate bond markets. It positions P3 for ongoing success in the dynamic logistics real estate market as we continue our growth initiatives and strengthen our capital structure. The funds raised will play an important role in supporting our profitable growth as we expand our property portfolio, which currently exceeds EUR 9 billion in 11 countries.”
Thilo Kusch, CFO of P3 added: “This Green Bond issuance complements our robust track record of raising debt, and is also aligned with our commitment to sustainable business practices. In 2023 alone, we successfully signed around EUR 2 billion new bank debt, a testament to the confidence lenders place in our creditworthiness. Feedback from debt investors gathered during the issuance process noted positively P3‘s recently reconfirmed BBB S&P credit rating with stable outlook, strong asset quality, ability to generate a steadily growing and predictable income, and our strong shareholder support.”
Ben Helsing, P3 Group Treasurer and Head of Debt Investor Relations, added: “We are pleased to have seized favourable conditions in the public debt market with this successful return to the market after a 2-year break. The very strong demand underscores investors’ confidence in P3. With an over EUR 3.5bn order book at its peak and a final book over 5 times oversubscribed, we achieved an attractive credit spread of 207 bps. It has been interesting to discuss P3‘s 'credit story' with bond investors and encouraging to hear that logistics continues to be one of the sub-segments within real estate favored by bond investors due to fundamentally strong demand trends. I would like to extend my thanks to all more than 150 investors for the trust in P3 and to the arrangers and advisors for great support in the transaction.”
Deutsche Bank AG, ING Bank, J.P. Morgan, CA-CIB and SMBC Nikko, acted as Active Joint Bookrunners, BNP Paribas and HSBC as Passive Joint Bookrunners.
Net proceeds from the issuance will refinance eligible green assets, as outlined in P3‘s Green Financing Framework. The Second Party Opinion from Sustainalytics, confirms the framework’s alignment with the International Capital Market Association’s Green Bond Principles. Both documents are available on P3’s website at https://www.p3parks.com/investors/green-financing.
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About P3 Logistic Parks
P3 is a long-term investor, manager and developer of European logistics real estate with over 8.5 million m² of assets under management and a land bank of 2 million m² for further development. P3 is commercially active in 11 countries and has been investing and developing in Europe for more than two decades. P3 employs more than 270 people in 11 offices in major European cities. P3 offers integrated development, asset and property management services.
For more information about P3, please visit www.p3parks.com.
Forward-looking statements
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General
This press release has been prepared by the Company for information purposes only. This press release is an indicative summary of the terms and conditions of the transaction described herein and may be amended, superseded or replaced by subsequent summaries or withdrawn entirely and neither the Company nor the Active and Passive Joint Bookrunners shall have any responsibility to publicly update or notify any other party of any such changes.
This press release is not an offer of securities for sale, or a solicitation of an offer to buy securities, in the United States or any other jurisdiction where to do so would be unlawful. The securities to which this press release relates have not been, and will not be, registered under the U.S. Securities Act of 1933, as amended (the “Securities Act”) or with any securities regulatory authority of any state or other jurisdiction of the United States, and may not be offered or sold in 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 applicable state or local securities laws. The Company does not intend to register any portion of the proposed offering described herein under the applicable securities laws of the United States or conduct a public offering of any securities in the United States.
This press release does not constitute an offer of securities to the public in the United Kingdom. No prospectus has been or will be approved in the United Kingdom in respect of the securities. This press release is being distributed to and is directed only at (i) persons who are outside the United Kingdom or (ii) persons who are investment professionals within the meaning of Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (the “Order”) and (iii) high net worth entities, and other persons to whom it may lawfully be communicated, falling within Article 49(2)(a) to (d) of the Order (all such persons together being referred to as “Relevant Persons”). Any investment activity to which this press release relates will only be available to and will only be engaged with, Relevant Persons. Any person who is not a Relevant Person should not act or rely on this press release or any of its contents.