Grand City Properties S.A. Successfully Issues €600 Million Perpetual Notes

Grand City Properties S.A. has announced the successful issuance of €600 million in perpetual notes, with a coupon rate of 4.75%. The strong demand for the issuance was evident with a peak orderbook reaching over €2 billion. Rated BB+ by S&P, the notes are 100% equity under IFRS, receiving 50% equity content under S&P's methodology.

The company plans to utilize the proceeds for buying back higher coupon perpetual notes and refinancing notes with a first call date in 2026. Concurrently, a tender offer has been launched, closing on December 8th, aimed at reducing the average coupon rate and enhancing S&P credit metrics. This strategic move also marks the beginning of addressing upcoming refinancing needs.