Citycon secures €89.5 million green loan for strategic refinancing By Investing.com
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Citycon, a leading owner, manager, and developer of mixed-use centers in the Nordics and Baltics, has secured a substantial green loan to bolster its financial strategy. The company announced today it has arranged a SEK 1.02 billion (€89.5 million) green term loan with pbb Deutsche Pfandbriefbank and Helaba, with a seven-year term and Liljeholmstorget Galleria as collateral.
The move is part of Citycon’s broader efforts to enhance its liquidity and manage debt more effectively. In April 2023, the firm increased its credit facilities to €650 million with the goal of repurchasing bonds to mitigate the impact of rising interest rates on its earnings. This proactive financial management reflects the company’s commitment to maintaining a robust balance sheet amidst fluctuating market conditions.
Additionally, in December 2022, Citycon embarked on a divestiture strategy, selling €120 million worth of non-core assets and engaging in negotiations for further sales amounting to €380 million. This strategy aligns with the company’s focus on prime assets located in urban areas across the Nordics and Baltics, particularly those adjacent to public transportation networks, which comprise a portfolio worth approximately €4.2 billion.
CFO Bret McLeod expressed satisfaction with the favorable terms of the new green loan, noting its positive influence on the company’s balance sheet tactics. The strategic refinancing initiative underscores Citycon’s dedication to sustainability and prudent financial stewardship as it navigates the complexities of the real estate market.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.
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Citycon, a leading owner, manager, and developer of mixed-use centers in the Nordics and Baltics, has secured a substantial green loan to bolster its financial strategy. The company announced today it has arranged a SEK 1.02 billion (€89.5 million) green term loan with pbb Deutsche Pfandbriefbank and Helaba, with a seven-year term and Liljeholmstorget Galleria as collateral.
The move is part of Citycon’s broader efforts to enhance its liquidity and manage debt more effectively. In April 2023, the firm increased its credit facilities to €650 million with the goal of repurchasing bonds to mitigate the impact of rising interest rates on its earnings. This proactive financial management reflects the company’s commitment to maintaining a robust balance sheet amidst fluctuating market conditions.
Additionally, in December 2022, Citycon embarked on a divestiture strategy, selling €120 million worth of non-core assets and engaging in negotiations for further sales amounting to €380 million. This strategy aligns with the company’s focus on prime assets located in urban areas across the Nordics and Baltics, particularly those adjacent to public transportation networks, which comprise a portfolio worth approximately €4.2 billion.
CFO Bret McLeod expressed satisfaction with the favorable terms of the new green loan, noting its positive influence on the company’s balance sheet tactics. The strategic refinancing initiative underscores Citycon’s dedication to sustainability and prudent financial stewardship as it navigates the complexities of the real estate market.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.
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