Korian has successfully issued new Schuldschein loans (a private placement loan issued under German law) for an amount of c. €380 million at historically low rates. The Group initially targeted to issue €150 million, however the final issuance was increased to c. €380 million on the back of strong demand leading to a strong oversubscription and a high quality orderbook. The funds will be used to reimburse shorter term more expensive debt both in 2021 and in 2022 as well as pre-funding the Group's liquidity and growth requirements under optimised conditions.

The maturities of the loans are between 5 and 8 years, mostly at fixed rate. Interest rate for the loans are below previous Schuldschein issuances, at 1.30% for the 5-year loan, 1.55% for 7-year and 1.70% for 8-year. These conditions, together with the liability management undertaken, will contribute to the improving financing costs for the Group.

It will also contribute to extend the company's average debt maturity to 5.8 years compared to 4.5 years at the end of 2019.