VIA Outlets raises 500 million euros with green bond issuance

VIA Outlets, the owner and operator of eleven fashion outlet centres across Europe, successfully raised 500 million euros through its issuance of a green bond. The bond, which carries a seven-year term and a fixed interest rate of 3.5 percent, attracted strong institutional investor interest, becoming 3.6 times oversubscribed with an order book exceeding 1.8 billion euros.

The proceeds from the issuance will be allocated toward general corporate purposes, notably supporting the Group's organic growth through the expansion of its existing portfolio, which includes two upcoming projects in Portugal and Switzerland, and enabling potential new acquisitions. A portion of the funds will also be used for the partial repurchase of the company's existing 600 million euros bond due in November 2028.

CEO Otto Ambagtsheer emphasised that the funds will underpin both the company's organic and inorganic growth strategies. “Our latest green bond issuance enables 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 dynamism in the investment market offering new acquisition opportunities," Ambagtsheer said.

CFO Peter Stals noted that the strong investor demand underscores the success of their "3R strategy" (remodelling, remerchandising, and remarketing) and will enhance liquidity for continued business growth.

The transaction was structured under VIA Outlets' Green Finance Framework, which achieved an "Excellent" rating from Sustainable Fitch for both its use of proceeds and annual reporting. The bond, which received a BBB+ credit rating from Fitch Ratings, will be listed on Euronext Dublin.