Covivio Hotels has successfully issued a €500 million green bond with a nine-year maturity.
The bond - which matures in May 2033 - 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, contributing to the company’s sustainability goals and strengthening its balance sheet.
The bonds will trade on Euronext Paris from Thursday this week.
Why it matters
The significant oversubscription indicates a high level of investor confidence in and strong demand for sustainable investments in the hospitality sector, aligning with the broader trend in the real estate sector towards supporting environmentally sustainable projects.