London—Dentons has advised CPI Property Group (CPI), the leading owner of income-generating real estate in the Czech Republic, Berlin and the Central and Eastern Europe (CEE) region, on the issue of Regulation S €750 million 1.625% green bonds due 2027. This transaction represents CPI's debut green bond issuance, making CPI the first real estate group to issue green bonds in its region. Dentons acted as English law and Luxembourg counsel to CPI. The joint lead managers were Barclays, Deutsche Bank, HSBC, Raiffeisen Bank and Société Générale. 

The green bonds were issued under CPI's €5 billion Euro Medium Term Note Programme, and are listed on the regulated market of Euronext Dublin. 

The green bonds received a very positive response from the market, attracting investors from a range of regions, such as the UK, France, Austria and Asia, and market demand peaked at over €2 billion euros. 

As the leading owner and manager of income-generating real estate in its region, CPI has ambitious plans to improve the environmental performance of its properties. Under its green bond framework, CPI has committed to use proceeds from the green bonds to finance and/or refinance green initiatives, such as acquiring and refurbishing certified green buildings, improving energy efficiency, and promoting sustainable farming. CPI intends to use a large portion of the proceeds to acquire high quality certified green buildings this year and next year, and hence increase the level of certified green buildings in CPI's portfolio. 

David Greenbaum, CFO of CPI, said, "We are very pleased with the outcome of this deal and with Dentons' guidance and advice on this transaction. The green bond offers a good platform to highlight CPI's ESG progress and strategy for the future."

Nick Hayday, partner in Dentons' Capital Markets practice in London who led on the transaction, said, "This transaction represents Dentons' continuing strength in delivering high quality advice on issuing green bonds. It builds on our recent work in debut green bond issuance, such as advising Ignitis Group (formerly Lietuvos Energija) on the first international corporate green bond from the CEE region. The transaction also demonstrates Dentons' enduring association with CPI. Earlier this year, we advised CPI on a series of financing transactions, including an update of a revolving credit facility and a €170 million senior unsecured Schuldschein, as well as capital markets transactions worth in excess of €1 billion. This includes CPI's inaugural US dollar issuance of US$450 million bonds, HKD 450 million bonds and the issuance of €550 million hybrid bonds. Dentons also acted for CPI on its update of the Euro Medium Term Note Programme, under which the green bonds were issued."

The Dentons team was led by Nick Hayday, assisted by associate Moeen Qayum and trainee Shinae Lee, and consisted of Luxembourg-based partner Stéphane Hadet, senior associate Olivier Lesage and associate Christophe Renaudin, as well as Prague-based partner Jiří Tomola.

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