Zug Estates issues 100 million bond
Zug Estates Holding AG placed a fixed-rate bond with a volume of CHF 100 million on the capital market on January 24, 2017.
The bond issued by Zug Estates has a coupon of 0.70 percent and a term of five years. The proceeds will be invested in the further development of the portfolio, the real estate company says.
The bond issue will enable the Group to diversify its financing instruments and benefit from the current attractive conditions on the capital market, Zug Estates added.
Credit Suisse and Bank Vontobel acted as Joint Lead Manager/Joint Bookrunner of the transaction. An application for admission of the bond to trading on the SIX Swiss Exchange will be submitted. The bond is scheduled to be paid on February 17, 2017.
The Zug Estates Group develops, markets and manages properties in the Zug region. The majority of the real estate portfolio is located in two sites in Zug and Risch Rotkreuz and is broadly diversified by type of use. In addition, the Group operates a City Resort in Zug with the business hotels Parkhotel Zug and City Garden and a complementary range of restaurants. The total value of the portfolio as of June 30, 2016 was CHF 1.2 billion.
