CBRE IM secures €500m green bond, reaching €1b in total

CBRE Investment Management (CBRE IM) has issued a second Green Bond worth €500 mln for a fund it sponsors.

Duco Mook and Jeroen de Grunt

This brings the fund's total bond issuances to €1 bn, following its initial €500 mln issuance in September 2025.

These new €500 mln senior unsecured notes have a five-year term and hold an A- rating from Fitch. Priced at 107 basis points over mid-swaps, the bond offers an all-in coupon of 3.875%.

The transaction was completed swiftly in a single day, allowing the fund to capitalise on favourable market conditions after earlier volatility. Investor interest was robust, with the order book peaking at over €2.5 bn, more than five times oversubscribed. This strong demand helped to significantly compress the spread from initial price thoughts.

This issuance marks a significant step in the fund's debt strategy, facilitating a shift from secured, asset-specific financing to a nearly fully unsecured capital structure. The funds raised will be used to refinance existing secured debt and pay down the fund's revolving credit facility.

Building on the success of last year's inaugural Green Bond, this second issuance establishes a €1 bn unsecured funding platform. This will enhance the fund's financial flexibility and support its future growth. The bond adheres to the fund's Green Finance Framework, with proceeds earmarked for a portfolio of eligible green assets.

Duco Mook, head of EMEA Treasury, Debt and Finance at CBRE Investment Management, commented: “This second bond issuance builds on the strong foundation established with our inaugural transaction last September and brings the fund’s total issuance to €1 billion - an important milestone in the evolution of our capital structure.”

Jeroen de Grunt, fund manager at CBRE IM, added: “The transaction was very well received by investors despite a more volatile market backdrop, reflecting continued demand for high-quality real estate credit and confidence in the fund’s strategy. The successful execution, including the level of oversubscription and spread compression achieved, underlines the strength of the platform and enables the fund to fully benefit from unsecured debt, enhancing flexibility, scalability and efficiency.”

The fund’s strategic banking partners ABN AMRO, BNP Paribas, Crédit Agricole CIB, HSBC and ING acted as Joint Active Bookrunners on the transaction.

Linklaters and Clifford Chance acted as legal advisors.