Milbank LLP advised Citycon Oyj on the issuance of its €350 million subordinated fixed to reset rate green capital securities. The capital securities will bear interest at a fixed rate coupon of 3.625 percent per annum until the reset date on September 10, 2026, and thereafter the interest rate will reset on each fifth anniversary of the issuance. The capital securities do not have a specified maturity date but Citycon is entitled to redeem the capital securities on any date in three months up to and including the First Reset Date, and subsequently, on each annual interest payment date.
The proceeds of the offering 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 are in line with Citycon’s diversification through densification strategy which aims at increasing the share of residential and office space in its portfolio.
Citycon is a leading owner, manager and developer of mixed-use centers for urban living including retail, office space and housing in the Nordic region with assets that total approximately €4.4 billion. Citycon’s centers are located in urban hubs with a direct connection to public transport. Placed in the heart of communities, Citycon’s centers are anchored by groceries, healthcare and services to cater to the everyday needs of customers.
The Milbank team was led by Capital Markets partner David Dixter and associate Maria C. Schweinberger. The team also included New York Tax partner Andrew Walker and associate Corey Spector.
