The manager of Cromwell European REIT (CEREIT) announced on Oct 20 that the REIT’s subsidiary, Cromwell EREIT Lux Finco S.à r.l. has established a EUR1.5 billion ($2.39 billion) Euro Medium Term Note Programme.
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According to the manager, the net proceeds of the notes will be used to grant loans directly or indirectly to certain subsidiary companies of the group.
The notes will be offered in Singapore.
Fitch Ratings has assigned the notes a rating of ‘BBB-‘ with stable outlook to CEREIT.
The programme is guaranteed by Perpetual (Asia) Limited as trustee of CEREIT and Cromwell EREIT Lux 2 S.à r.l.. The Bank of New York Mellon is the guarantee agent.
Additionally, Cromwell EREIT Lux Finco S.à r.l. has also entered into a EUR135 million unsecured revolving credit facility with an accordion increase option of a further EUR65 million.
The proceeds of the facility will be applied towards general funding corporate purposes including the refinancing of existing indebtedness and other general working capital purposes.
Intesa Sanpaolo S.p.A., Société Générale, Banque Européenne du Crédit Mutuel and Crédit Industriel et Commercial, Singapore Branch, are the mandated lead arrangers and original lenders, with Intesa Sanpaolo S.p.A. as the agent.
As at 11.17am, units in CEREIT are trading flat at 47 Euro cents.
