Grand City Properties Issues €600 Million Perpetual Notes

Grand City Properties S.A. has announced the successful issuance of €600 million perpetual notes, with a coupon rate of 5.25%. This issuance was oversubscribed by leading institutional investors, highlighting strong market confidence. The notes are considered 100% equity under IFRS and are expected to receive a BB+ rating from S&P, holding 50% equity content under their methodology.

This financial move aims to fund a tender offer for the company's outstanding €602.7 million perpetual notes, callable in 2026. Concurrently launched with the issuance, the tender offer is set to expire on April 30. Following this, the company plans to call any remaining callable notes to complete its refinancing strategy.

Through this transaction, Grand City Properties seeks to maintain its equity content under S&P's rating methodology, thus supporting its credit metrics. The company anticipates its next reset events for perpetual notes only in 2031, solidifying its financial stability.