Colonial Group and subsidiary convert all bonds to green bonds

By Mary-Katherine Stinson

Lexington, Ky., Feb. 17 – Inmobiliaria Colonial Socimi SA and its French subsidiary Societe Fonciere Lyonnaise have completed the requalification of the group’s €4.6 billion outstanding bonds into green bonds following bondholder approval, according to a press release Thursday.

Meetings took place Feb. 3 in which bondholders approved the requalification of the use of proceeds from general corporate purposes to financing or the refinancing of a portfolio of eligible green assets.

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

Credit Agricole CIB and Freshfields Bruckhaus Deringer acted as advisers.

The group is the first Ibex-35 company to have all their bonds qualified as green.

The company stated it is their intention that any bonds issued in the future will be issued under the green financing framework, which was drawn up to align its financing strategy with sustainability objectives including energy efficiency and the prevention and reduction of carbon emissions from the group’s assets and has been developed in line with ICMA’s green bond principles.

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 was issued by SFL, which also issued €500 million of bonds in October.

As of Sept. 30, the group’s loan to value was around 37%.

The real estate investment trust is based in Madrid.

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