Spain’s Colonial, French subsidiary aim to convert all bonds to green bonds

By Rebecca Melvin

Concord, N.H., Jan. 12 – Inmobiliaria Colonial Socimi SA and its French subsidiary Societe Fonciere Lyonnaise will seek consent bids regarding a plan to convert all their outstanding €4.6 billion principal amount of bonds into green bonds, according to a company release on Wednesday.

Colonial has drawn up a green financing framework to align its financing strategy with sustainability objectives including energy efficiency and the prevention and reduction of carbon emissions from the group’s assets. It has been developed in line with ICMA’s green bond principles.

The debt is intended to finance green assets, which are those that have a positive impact on the environment.

Bondholder meetings are slated to take place on Feb. 3 with bondholders to be asked to approve the requalification of the use of proceeds from general corporate purposes to financing or the refinancing a portfolio of eligible green assets.

Colonial and SFL intend to allocate an amount equivalent to the outstanding principal amount of the bonds to the financing or the refinancing of the portfolio of assets meeting the environmental criteria outlined in the framework.

The group has appointed Credit Agricole CIB and Freshfields Bruckhaus Deringer as advisers.

The requalification of the outstanding bonds will not impact any other characteristics of the bonds, including terms and conditions, interest rates or maturity.

At the end of September, the group had a net debt of €4,645,000,000, of which €2,812,000,000 corresponded to bonds issued by Colonial and €1.29 billion issued by SFL, which also issued €500 million of bonds in October.

The real estate investment trust is based in Madrid.

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