Citycon Oyj considers issuance of green Capital Securities

HELSINKI, May 25, 2021 /PRNewswire/ -- NOT TO BE RELEASED, PUBLISHED OR DISTRIBUTED, DIRECTLY OR INDIRECTLY, IN WHOLE OR IN PART IN OR INTO OR TO ANY PERSON LOCATED IN OR RESIDENT IN THE UNITED STATES, ITS TERRITORIES AND POSSESSIONS, ANY STATE OF THE UNITED STATES OR THE DISTRICT OF COLUMBIA (TOGETHER THE "UNITED STATES"), AUSTRALIA, CANADA OR JAPAN OR ANY OTHER JURISDICTION IN WHICH THE DISTRIBUTION OR RELEASE WOULD BE UNLAWFUL.

Citycon Oyj ("Citycon ") is considering the issuance of euro-denominated green capital securities ("Capital Securities") in an amount of approximately EUR 300 million. The issuance of the Capital Securities will take place in the near future, subject to market conditions. Citycon will apply for the Capital Securities to be admitted to the official list of Euronext Dublin (the "Official List") and to trading on its Global Exchange Market (the "Global Exchange Market"), which is the exchange regulated market of Euronext Dublin.

The Capital Securities will be subordinated to certain other debt obligations and will be treated as equity in Citycon's consolidated financial statements prepared in accordance with IFRS. The Capital Securities will not confer on their holders the rights of a shareholder nor will they dilute the holdings of the current shareholders.

An amount equal to the net proceeds from any potential issuance of Capital Securities will be allocated to the financing and refinancing of new and existing assets, developments or projects that meet Citycon's green financing framework requirements and in line with Citycon's diversification through densification strategy which aims at increasing the share of residential and office space in its portfolio. The planned issuance will strengthen the balance sheet and demonstrates Citycon's commitment to improving its investment grade credit ratings.

Citycon's green financing framework reflects practices that support the transition to a sustainable and low carbon economy through the development of green assets. Proceeds allocated in accordance with the framework will be used to finance or re-finance eligible green assets in categories green buildings, energy efficiency, renewable energy or waste management.

Citycon has mandated Citigroup Global Markets Limited, Danske Bank A/S, Deutsche Bank Aktiengesellschaft, Goldman Sachs International, Nordea Bank Abp and Swedbank AB (publ) as joint bookrunners.