The issue attracted strong interest, being almost four times oversubscribed, demonstrating investors' interest in the hotel sector and their confidence in Covivio's strategy and portfolio quality, 89% of which is located in major European cities.

The proceeds of the issue will be used to finance or refinance Covivio's portfolio of eligible green hotels in accordance with Covivio's Green Financing Framework. The spread of the issue is 148 basis points for a maturity of nine years. This issue will be largely variabilised, benefiting from Covivio's good hedging position, with 89% of the debt hedged at the end of 2023 and a hedge maturity of 5.6 years.

This transaction will enable Covivio Hotels to strengthen its balance sheet by extending the maturity of its debt. On 19 April 2024, Standard & Poor's confirmed Covivio Hotels' credit rating at BBB+ with a stable outlook.

Application will be made for the bonds to be admitted to trading on Euronext Paris. The definitive documentation relating to this issue will be available on the websites of the Autorité des Marchés Financiers and Covivio Hotels. Settlement and delivery of the bonds and their admission to trading on Euronext Paris are scheduled for 23 May 2024.

In 2023, Covivio has demonstrated strong performance in its hotel segment, with RevPAR in Europe up 16% on 2019, mainly driven by a 23% increase in average price. Covivio's ESG strategy also made significant progress, with 95.3% of the portfolio certified and an increase in the proportion of debt linked to ESG objectives to 57%. In addition, 80% of the assets under management now benefit from a green electricity contract, and carbon emissions have been reduced by 26% by the end of 2023, in line with the target of -40% by 2030.

This €500 million green bond issue will enable Covivio to strengthen its CSR policy while accessing more advantageous financing and extending the maturity period of its debt.