VGP Raises 600 Million Euros Through Green Bond Issue
Logistics real estate group VGP has successfully placed its fourth reference green bond with a nominal amount of 600 million euros. According to the press release, these senior unsecured bonds carry a coupon of 4% per annum and mature in January 2032.
Strong Investor Interest
The operation generated significant interest from investors, the company reports. The order book exceeded 3 billion euros following the announcement of the final terms. Despite a significant tightening of 35 basis points and an increase in the amount by 100 million euros, demand remained strong with an additional 500 million euros in orders, according to VGP. The final order book reached 3.5 billion euros, representing an oversubscription of 7 times the initial target of 500 million euros.
Purpose of the Proceeds
According to the group, the net proceeds from the issue will be used to finance or refinance a portfolio of eligible assets in accordance with VGP's sustainable finance framework. The company launched a capped tender offer for its fixed-rate green bonds of 1.625% with a total amount of 500 million euros maturing in January 2027 the day before. According to the press release, 320.1 million euros of these bonds were still outstanding at the time of the launch of the tender offer.
Listing and Trading Details
The new bonds will be listed and admitted to trading on the EuroMTF market of the Luxembourg Stock Exchange, VGP indicates. The settlement and admission to trading are scheduled for January 16, 2026. Belfius, J.P. Morgan, and KBC are acting as joint global coordinators for the operation, while BNP Paribas and ING are also serving as joint active bookrunners. The group notes that as of June 2025, it had a gross asset value of 8.3 billion euros and a net asset value of 2.6 billion euros.
