VIA Outlets raises €500m for growth and sustainability

Sustainable fashion outlet owner VIA Outlets has raised €500 mln by issuing green bonds that mature in 2032. 

Batavia Stad

This offering was very popular with investors, drawing over €1.8 bn in orders, making it 3.6 times oversubscribed. The bonds have a seven-year term and offer a fixed annual interest rate of 3.5%.
The money raised will be used for various company needs, such as potentially buying new outlet centers and investing in its current 11 premium locations. Some of the funds will also go towards partially buying back VIA Outlets' existing €600 mln notes that are due in November 2028.
This green bond issuance aligns with VIA Outlets' Green Finance Framework, meaning the proceeds will be allocated to environmentally friendly projects. Sustainable Fitch has given this framework an 'Excellent' rating for its use of proceeds and reporting, confirming its adherence to market standards.
Peter Stals, CFO at VIA Outlets, commented: “The high demand from investors for VIA Outlets’ green bonds underlines our strong performance track record and success of our 3R strategy – remodelling, remerchandising and remarketing, which has been delivered whilst maintaining a robust balance sheet and financial position. The capital raised provides additional liquidity to grow the business, whilst proactively extending our debt maturity profile.”
Otto Ambagtsheer, CEO of VIA Outlets, added: “Our latest green bond issuance is an enabler of both VIA Outlets’ organic and inorganic growth strategies, with the upcoming opening of two expansion projects in Portugal and Switzerland, and more in the pipeline, as well as the renewed momentum in investment markets that is increasing acquisition opportunities. Our core ESG values overlay both of these twin strategies ,and we remain committed to sustainable growth as we capitalise upon opportunities to invest and create value.”
The newly issued bonds will be traded on the Euronext Dublin stock exchange (specifically, the Global Exchange Market). BNP Paribas, ING, and SMBC were the main banks managing the sale of these bonds, with ING also handling the ESG aspects. Fitch Ratings has given these bonds a BBB+ credit rating, which matches VIA Outlets' overall company rating.
VIA Outlets, fully owned by Dutch investor APG, operates 11 high-end fashion outlet centers in the Czech Republic, Germany, the Netherlands, Norway, Portugal, Poland, Spain, Sweden, and Switzerland. Collectively, they feature over 1,100 stores across 281,000 m2 of retail space.