DGAP-News

CPI Property Group - 10-year Bond and Hybrid Offerings

DGAP-News: CPI PROPERTY GROUP / Key word(s): Bond CPI Property Group - 10-year Bond and Hybrid Offerings 27.01.2021 / 21:27 The issuer is solely responsible for the content of this announcement. CPI PROPERTY GROUP (société anonyme) 40, rue de la Vallée L-2661 Luxembourg R.C.S. Luxembourg: B 102 254 PRESS RELEASE CORPORATE NEWS

Luxembourg, 27 January 2021

CPI Property Group - 10-year Bond and Hybrid Offerings

CPI PROPERTY GROUP ("CPIPG" or the "Group"), the leading owner of income-generating real estate in the Czech Republic, Berlin, Warsaw and the CEE region, announces the successful offering of 10-year senior unsecured and hybrid bonds totaling €1 billion.

On 27 January 2021, CPIPG issued €600 million of new 10-year senior unsecured bonds with a coupon of 1.5% and €400 million of new undated subordinated notes callable in 2028. Total investor demand for the offerings was nearly €3 billion.

"Raising €1 billion through one bond transaction is a new milestone for CPIPG," said David Greenbaum, CFO. "We are grateful for the consistent support of our bond investors."

The undated subordinated bonds carry a coupon of 3.75% and will be treated as equity for IFRS accounting purposes; the undated subordinated bonds will receive 50% equity credit from Moody's and Standard & Poor's.

Proceeds from the offerings will be used for general corporate purposes and to repay more than €750 million of senior unsecured and undated subordinated bonds which are callable or mature in 2022, 2023, and 2024. CPIPG is proud of the Group's track record of early repayment and intends to remain proactive in managing our maturity profile.

The combination of new offerings and debt repurchases has a positive effect on the Group's credit ratios and provides flexibility for growth as the world emerges from COVID. Following the transactions, only about 15% of the Group's total financing is due or callable within the next three years, and about 40% within the next five years.

About the Offerings

The new EUR 600,000,000 1.500 per cent. Senior Notes due 27 January 2031 (the "Senior Notes") are listed on the Main Market of the Irish Stock Exchange plc (trading as Euronext Dublin) and are accepted for clearance through Euroclear and Clearstream, Luxembourg. The Senior Notes, issued under the Company's EUR8,000,000,000 Medium-Term Note Programme, are rated Baa2 by Moody's and BBB by Standard & Poor's. The ISIN code for the Senior Notes is XS2290544068 and the Common Code is 2290544068.