By Sarah Lizee
Olympia, Wash., June 25 – Prologis International Funding II SA priced €450 million of 0.875% 10-year senior green bonds (A3/A-) at 99.449 to yield 0.933%, or a spread of mid-swaps plus 75 basis points, according to a market source.
The bonds are guaranteed by Prologis European Logistics Fund, FCP-FIS.
The joint lead arrangers are BNP Paribas, Deutsche Bank and HSBC.
The guarantor intends to allocate the net proceeds to its eligible green project portfolio, the source added.
Pending allocation, the proceeds may be used for debt repayment and for other capital management activities.
The bonds have covenants that require the company to keep its total debt to total assets at or below 60%, its secured debt to total assets at or below 40%, its fixed charge coverage ratio at 1.5 times or more and its unencumbered assets to unsecured debt at or above 150%.
Prologis European Logistics Fund owns and operates core industrial distribution properties across Europe. Prologis International Funding II is the fund’s funding vehicle. Both are based in Luxembourg.
| Issuer: | Prologis International Funding II SA
|
| Guarantor: | Prologis European Logistics Fund, FCP-FIS
|
| Issue: | Senior green bonds
|
| Amount: | €450 million
|
| Maturity: | July 9, 2029
|
| Bookrunners: | BNP Paribas, Deutsche Bank and HSBC
|
| Coupon: | 0.875%
|
| Price: | 99.449
|
| Yield: | 0.933%
|
| Spread: | Mid-swaps plus 75 bps
|
| Settlement date: | July 9
|
| Distribution: | Regulation S
|
| Ratings: | Moody’s: A3
|
| S&P: A-
|
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