S&P gives Citycon green notes BB

S&P said it assigned its BB issue-level rating to Citycon Oyj’s proposed unsecured subordinated hybrid notes.

The rating is two notches below the company’s rating to account for the notes’ subordination and interest deferability, the agency said.

“We understand note proceeds will primarily repay existing unsecured bonds. Citycon is also launching a tender offer to repurchase its €219 million bonds due in 2020, €350 million bonds due in 2022, €350 million bonds due in 2024, and NOK of up to €900 million due in 2024 to extend debt maturities and reduce near-term debt maturities further. Any remaining proceeds will pay down debt or commercial paper. In addition, given that the hybrid bond is a green issuance, proceeds must finance or refinance existing assets, developments, or projects that meets the company’s green financing framework requirements,” S&P said in a press release.

The agency classifies the notes as having intermediate equity content until the first call date in November 2024.

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