BERLIN (dpa-AFX) - German residential real estate company Vonovia SE (DAIMF) Friday said it has placed corporate bonds totaling 5 billion euros with an average coupon of 0.49 percent.
The company has successfully issued five unsecured and fixed-interest bonds with a total volume of 5 billion euros. The bonds were 4 times oversubscribed, attracting demand of just under 20 billion euros.
Based on high investor demand, the company said it was able to secure very attractive conditions.
For the first time, Vonovia placed a bond with a maturity of 30 years.
The company noted that the proceeds are primarily earmarked to refinance the bridge financing for the planned business combination with Deutsche Wohnen SE as well as for upcoming repayments.
The issue follows the successful placement of corporate bonds with a volume of 4 billion euros in June 2021.
Chief Financial Officer Helene von Roeder said, 'In light of the intended combination with Deutsche Wohnen, we now feel even stronger on the debt capital side. The high level of investor demand shows that the planned business combination is seen as strategically compelling. Now the crucial step is for the Deutsche Wohnen shareholders to also accept our offer.'
Vonovia on August 23 aunched its voluntary public takeover offer for Deutsche Wohnen shares. The company is offering 53 euros in cash for each Deutsche Wohnen share. Vonovia said the new offer builds on previous agreements, and there will be no third offer.
Copyright RTT News/dpa-AFX