Citycon Lands €89.5 Million Green Loan to Supercharge Strategic Refinancing

"Citycon Bolsters Liquidity and Debt Management Strategy with €650 Million Credit Facilities Increase"

Citycon, a leading real estate company in the Nordics and Baltics, has secured a new green loan worth €400 million. The move is part of Citycon’s broader efforts to enhance its liquidity and manage debt more effectively. This proactive financial management reflects the company’s commitment to maintaining a robust balance sheet amidst fluctuating market conditions.

In April 2023, Citycon increased its credit facilities to €650 million with the goal of repurchasing bonds to mitigate the impact of rising interest rates on its earnings. This strategic move demonstrated the company’s determination to navigate the challenges posed by market dynamics.

Furthermore, in December 2022, Citycon embarked on a divestiture strategy, selling €120 million worth of non-core assets. The company also engaged in negotiations for further sales amounting to €380 million. This divestiture strategy aligns with Citycon’s focus on prime assets located in urban areas across the Nordics and Baltics, particularly those adjacent to public transportation networks. The company’s portfolio, which is valued at approximately €4.2 billion, comprises these sought-after assets.

Citycon’s Chief Financial Officer, Bret McLeod, expressed satisfaction with the favorable terms of the new green loan. He noted that this financing initiative would have a positive influence on the company’s balance sheet tactics. The strategic refinancing underscores Citycon’s dedication to sustainability and prudent financial stewardship as it navigates the complexities of the real estate market.

The new green loan will contribute to Citycon’s ongoing efforts to reduce its environmental impact and promote sustainability. The company has been actively incorporating sustainable practices into its operations, including energy-efficient solutions and environmentally friendly building materials. By securing a green loan, Citycon is further demonstrating its commitment to sustainable development and responsible business practices.

This latest financial move by Citycon comes at a time when real estate companies are facing various challenges, including rising interest rates and market uncertainties. By proactively managing its debt and optimizing its balance sheet, Citycon is positioning itself for long-term success and resilience in the face of changing market conditions.

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Martin Reid

Martin Reid

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