The bond issuance has a 3% effective annual cost, thanks to Covivio’s robust interest rate hedging position. The bonds were issued with an annual coupon of 3.625% and a spread of 135 basis points over nine years.
This issuance aims to reinforce Covivio’s balance sheet by extending the average debt maturity to 4.8 years by the end of 2024, enhancing liquidity targeting 2,5 billions by the end of 2024 and covering debt maturities until 2027. The Group also aims to maintain a competitive debt cost, expected to be below 2.5% until 2028 and also to continue to diversify sources of financing.
In addition, Covivio’s financial strength was recognized by Standard & Poor’s, which confirmed the company’s BBB+ rating with a stable outlook in May 2025. The bond proceeds will be used to finance or refinance assets that align with the EU Green Bond Standards, which were introduced to harmonize the requirements for green bonds and ensure transparency, reporting, and verification.
Covivio’s green bond issuance is the first of its kind in the real estate sector under the new EU Green Bond format, marking the company as a pioneer in the field. The bonds will be listed on Euronext Paris, with the settlement and admission to trading expected on June 17, 2025. As of the end of 2024, €4.2 billion in assets are eligible for EU Green Bond financing.
