Dentons Advises CPI Property Group on EUR 1 Billion Notes Issuance

Dentons Advises CPI Property Group on EUR 1 Billion Notes Issuance

Czech Republic
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Dentons has advised CPI Property on the issuance of EUR 650 million 1.500% senior notes due 27 January 2031 and EUR 400 million 3.750% resettable undated subordinated notes callable in July 2028.

CPI Property Group is a Luxembourg-based owner of office and retail space, hotels, agricultural, industrial, and logistics properties in the Czech Republic and Berlin, among other locations.

According to Dentons, “the new notes, which were issued under CPIPG’s EUR 8 billion Euro Medium Term Note Program, received significant investor interest with approximately EUR 3 billion in demand.” In addition, the firm reported, “the proceeds of the issuance of the new notes will be used for CPIPG's general corporate purposes, as well as the redemption of approximately EUR 750 million of CPIPG's outstanding senior unsecured and undated subordinated bonds which mature or are callable in 2022, 2023, and 2024.”

Furthermore, the firm reported that “the new notes were issued in connection with a tender offer announced by CPIPG on  January 18, 2021, targeting its EUR 550 million 4.375% undated subordinated notes callable in 2023 and EUR 825 million 2.125% senior notes due 2024.” According to the firm, “the rationale for the tender offer was to extend CPIPG's debt maturity profile [and] on January 25, 2021,  more than EUR 213 million of the 2023 hybrids and approximately EUR 129 million of the 2024 notes were accepted for purchase in the tender offer.”

The Dentons team included in London, Partner Nick Hayday, Senior Associate Victoria Wyer, Associates Moeen Qayum and Niharika Khimji, and Trainee Ekaterina Merabishvili, and in Luxembourg, Partner Stephane Hadet, Counsel Olivier Lesage, and Associate Pierre Hever.

Dentons did not reply to an inquiry about the deal.