The document published in Bucharest says that the benchmark reference rate for the NE notes is the rate of the German notes due in April 2023, which have a negative yield at the moment. NE Property says spread of the tender offer is 0.5% above the yield of the two-year German notes.
“The purpose of the offer and the planned issuance of new notes is, amongst other things, to optimize and extend the debt maturity profile of the company. Any notes purchased by the company pursuant to the offer are expected to be cancelled and will not be re-issued or re-sold,” the company said.
On January 10, 2022, the offeror announced its intention to issue euro-denominated fixed rate notes pursuant to its EUR4 billion Guaranteed Euro Medium Term Note Program, subject to market conditions.
NE Property listed EUR500 million bonds at a rate of 2.65% per year in 2019, which were due in 2023. The company issued 5,000 bonds at a nominal value of EUR100,000 each to refinance debt, fund new projects and buy real estate projects.
The dealer managers of the tender offer are Citigroup, ING, J.P. Morgan, Société Generale and UniCredit Bank, according to the document submitted to the Bucharest Stock Exchange.
(English version by Loredana Fratila-Cristescu)