The TAG Immobilien Group successfully issued 5.5-year fixed-rate bonds at 4.25% and a total value of EUR 500 million. A high oversubscription 5 times the initial offering and a significant interest from institutional investors in TAG’s business model was noted. The funds raised will be allocated for corporate purposes, including further development of the Polish rental portfolio, refinancing future liabilities and strengthening investment-grade ratings.
“The successful placement of corporate bonds is an important step in diversifying our sources of financing. We will use the funds obtained to further develop our Polish rental portfolio, as well as future refinancing. The successful bond issuance also strengthens our two investment-grade ratings by increasing the use of unsecured instruments. We are very pleased with the strong interest in our bonds from investors and the trust they have placed in TAG” – commented Martin Thiel, CFO and co-CEO of TAG.
The transaction was led by BofA Securities, Deutsche Bank, J.P. Morgan and Société Générale as co-lead managers of the books.
“Collaboration within the TAG Group gives us significant competitive advantages in the Polish market, but above all, it strengthens our financial position. This allows us to implement further investments and expand our portfolio. Such strong investor interest in the bonds of the TAG Group confirms that they see our successes in Poland and believe in our strategy and development potential” – pointed out Oscar Kazanelson, Chairman of the Supervisory Board of ROBYG and Vantage.
In 2024, the TAG Group plans to sell around 2700 apartments and increase the rental portfolio by 1000 new apartments. In addition, the Group is expanding its land bank, which includes the potential for building around 25,000 units across Poland and is looking for investment opportunities in new land.
In total, the TAG Group signed 1497 preliminary and development agreements and 409 reservation contracts. ROBYG recognized and posted revenue from 1100 units while the TAG Group delivered 1540 units, including 1330 units given to customers and 212 units brought into the rental market. In H1 2024, the TAG Group had under construction about 4100 apartments and commercial premises in Poland. The rental portfolio of the Group accounted for about 2600 units at the end of H1 2024.
In June 2024, the TAG Immobilien Group – encompassing ROBYG and Vantage – invested PLN 390 million in a land bank across Poland. In the first half of 2024, the TAG group in Poland had approximately 3,900 homes and commercial properties under construction.
Source: https://ceo.com.pl/tag-immobilien-wyemitowala-obligacje-o-wartosci-500-mln-euro-12061
