Covivio Hotels, the hotel real estate subsidiary of Covivio, has announced the successful placement of a €500 million green bond issue, maturing in May 2033, which was nearly four times oversubscribed.

The proceeds of the issue will be used to finance or refinance the company's portfolio of eligible green hotels, as defined in the Green Financing Framework. This transaction will also strengthen Covivio Hotels' balance sheet, by extending the maturity of the debt.

The spread of the issue is 148 basis points at nine years. The issue will be largely variabilized in order to take advantage of the Group's good hedging position (89% of debt hedged at the end of 2023, 5.6 years of hedge maturity).

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