Aroundtown SA Successfully Issues Benchmark Bond and Launches Tender to Buyback Shorter-Term Bonds

Aroundtown SA has successfully issued a 5-year €650 million unsecured bond. This marks the company's first senior unsecured bond issuance in over two years. The new Series 40 bond features a coupon of 4.8% and will mature in Q3 2029. Investor demand was strong, with the bond being oversubscribed seven times, amassing approximately €4.5 billion in orders. The bond is expected to be rated BBB+ by S&P.

In parallel, Aroundtown has launched a tender process to buy back over €1.8 billion in shorter-term bonds. The tender, which began on July 8 and is set to expire on July 15, aims to extend the company's debt maturity profile and strengthen its balance sheet. This effort is part of a broader transaction that, along with the new bond issuance, supports Aroundtown’s proactive liability management strategy.

Together with its subsidiary Grand City Properties, the group has issued €1.15 billion in bonds. This move is expected to help the company in its ongoing deleveraging efforts and bolster its financial stability.