At a glance
- The Austrian developer expects to issue the notes on 30 October, with subscriptions open from 6 to 23 October, and has tied the final size partly to how many holders of its outstanding 2023-2027 green bond accept an exchange offer that closes on 16 October, a week before the subscription window shuts.
- Proceeds may refinance existing financing as well as finance or refinance new and existing eligible green projects under UBM’s Green Finance Framework, and the bonds are expected to list on the Vienna Stock Exchange’s Official Market and be included for trading on the Frankfurt Stock Exchange’s Open Market.
- Before that exchange closes, UBM cannot know how much of the new issue it will sell at the reoffer level, because holders of the 2023-2027 notes have until 16 October to accept the exchange or pass.
UBM Development has set terms on a five-year green bond that starts at €50 million ($56 million), can rise to €100 million, and carries a 7% annual coupon at a reoffer price of 99% to 100% of par. The Austrian developer expects to issue the notes on 30 October, with subscriptions open from 6 to 23 October, and has tied the final size partly to how many holders of its outstanding 2023-2027 green bond accept an exchange offer that closes on 16 October, a week before the subscription window shuts.
Proceeds may refinance existing financing as well as finance or refinance new and existing eligible green projects under UBM’s Green Finance Framework, and the bonds are expected to list on the Vienna Stock Exchange’s Official Market and be included for trading on the Frankfurt Stock Exchange’s Open Market.
The old bond sets the new bond's size
Before that exchange closes, UBM cannot know how much of the new issue it will sell at the reoffer level, because holders of the 2023-2027 notes have until 16 October to accept the exchange or pass. That puts the green designation alongside a liability-management exercise rather than a straight project financing: the proceeds may go to refinancing existing debt as easily as to new eligible projects. The Green Finance Framework is the issuer’s own, and the coverage does not name a second-party opinion provider or specify which project categories qualify.
A €50 million issue, extendable to €100 million with a fixed 7% coupon, does not establish where European real estate transition credit clears, and the Vienna and Frankfurt listings address a defined investor base. The tenor and coupon are fixed in advance; the size is revealed only by how many 2023-2027 holders take the exchange. Whether the eligible projects absorb the proceeds as new financing or as refinancing is answered after allocation, not before.
The dates to watch run from 16 October, when the exchange offer closes, to 30 October, when the new notes are expected to be issued.
Reported by the Transition Finance desk from Environmental Finance. Published . Corrections