Dentons has advised CPI Property Group (CPIPG), the leading owner of income-generating real estate in the Czech Republic, Berlin and the Central and Eastern Europe (CEE) region, on its debut sustainability-linked bond issuance. The €700 million 1.750% bonds are due in 2030. Goldman Sachs International, HSBC Continental Europe, Société Générale and UniCredit Bank AG acted as Joint Global Coordinators and Joint Bookrunners and Bank of China Limited, London Branch and Barclays Bank Ireland PLC as Joint Bookrunners. Proceeds from the bonds will be used primarily to fund the full repayment of CPIPG’s 4.75% notes due 8 March 2023, and 2.125% notes due 4 October 2024. The bonds are rated Baa2 by Moody’s and BBB by Standard & Poor’s, and are listed on the main market of Euronext Dublin.

The sustainability-linked bonds are subject to a step-up margin of 0.25% in the final two years if CPIPG does not achieve a reduction in greenhouse gas emissions intensity of 22% by year-end 2027. This is in keeping with CPIPG’s commitment to reduce the greenhouse gas emissions intensity of their property portfolio by 30% by 2030, versus the 2019 baseline. CPIPG has ambitious plans for the future, and ensuring that these plans are in line with CPIPG's commitment to Environmental, Social and Governance (ESG) principles and action is vitally important to its strategy. CPIPG recognises the important role that sustainable finance plays in supporting the transition to a low-carbon and more resource-efficient global economy.

Martin Matula, General Counsel of CPIPG, said: "CPIPG was the first real estate group to issue green bonds in our region. This sustainability-linked bond issue marks another significant milestone on our ESG journey.  Once again, it was great to leverage the skillset of the Dentons team."

Nick Hayday, partner in Dentons' Capital Markets practice in London who led on the transaction, said: "CPIPG is a longstanding and highly valued client. We have advised on a series of financings for CPIPG, including its first green bond, its takeover financing for the IMMOFINANZ offer, several liability management exercises and the update of its Euro Medium Term Note Programme, under which the sustainability-linked bonds were issued via a prospectus supplement. It was fantastic to advise in relation to this significant transaction.  We were able to draw upon a wealth of experience in advising on ESG products to support CPIPG."

The Dentons team was led by Nick Hayday, assisted by senior lawyer David Ferris and associate Zeeshan Hussain. Luxembourg-based counsel Oli­­vier Lesage, associate Pierre Hever and partner Stéphane Hadet provided Luxembourg law advice.

Dentons has a well-established reputation for advising on green and ESG bonds.  Notable other deals include advising the underwriters on the Isle of Man Treasury debut sustainable bond, Standard Bank of South Africa on its first green bond,  Globe Trade Centre on its first green bond and Ignitis on the first-ever international corporate green bond to be issued from Central and Eastern Europe.

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