CTP issues €1bn dual-tranche Green Bond

Bratislava from above at night

Finance raised to upgrade and build sustainable logistics parks in Eastern Europe.

One of Europe’s top-five logistics property companies has completed a $1bn green bond issue. CTP has issued exclusively green bonds since 2019, using finance to meet its commitment to certify all of its logistics and industrial estates and projects to a minimum BREEAM Very Good standard.

The new bond issue attracted nearly €4bn of investor demand – demonstrating the appetite for green investment opportunities around the world and the proceeds will help to finance the development and acquisition of sustainable industrial parks in Hungary, Poland, Romania, Serbia and the Slovak Republic, as well as upgrade older facilities to improve their sustainability.

Richard Wilkinson, chief financial officer of CTP, commented: “We were able to attract significant demand from both existing and new institutional investors with over 200 investors participating. This issue marks the final delivery on our promise to migrate our debt funding to a largely unsecured debt platform, with the bond proceeds going towards the prepayment of bank financing of our Czech portfolio.”

CTP is the largest logistics property company in Central and Eastern Europe with 100 industrial parks but much of the demand came from western European investors. 60% of interest in its green bonds was from Ireland, the UK and the Benelux countries.

The European Bank for Reconstruction and Development (EBRD) also invested €42.5m, renewing its long-standing investment relationship with CTP while expanding its own green investment stock.

Vlaho Kojakovic, EBRD director of property and tourism, said: “Boosting the development of green industrial real estate is a priority for the EBRD. We are very proud to be supporting the expansion plans of our long-standing partner CTP, helping it to narrow gaps in sectoral skills, youth employment opportunities as well as to reach ambitious climate-related targets. The investment addresses challenges related to supply chains and logistic infrastructure in the EBRD’s regions, by supporting CTP’s continuous development of the logistics sector.”