Financial Advisory
Aoshearman
Full Credential Description
Stoneweg European REIT (SERT), a diversified Pan-European Real Estate Investment Trust listed on the Singapore Exchange, faced the challenge of restructuring EUR500 million in debt. The specific issues included the need to raise capital efficiently while ensuring compliance with green investment standards, as well as managing investor demand in a competitive market. AO Shearman provided a tailored solution that involved a two-pronged approach: first, they facilitated a new EUR340 million bridge to bond debt facility, and second, they assisted in the issuance of EUR500 million in 4.25% Green Bonds due in 2031. These Green Bonds were notable for being dually listed on both the Luxembourg Green Exchange and the Singapore Exchange, and they were backed by a robust portfolio of EUR1.1 billion in green-certified assets, meeting BREEAM or LEED standards. The bonds received an Investment Grade rating of BBB from SP Global Ratings and Fitch Ratings, which enhanced their attractiveness to investors. The results of this restructuring were significant. SERT experienced overwhelming demand from over 100 major institutional debt investors, with total interest exceeding EUR2.4 billion, leading to an oversubscription of nearly five times the amount sought. This successful capital raise not only strengthened SERTs financial position but also underscored its commitment to sustainable investment practices.