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Corporate News
 

Deutsche Wohnen SE successfully places EUR 1 billion corporate bonds

• Dual- tranche offering with 5 year and 10 year maturity and average coupon of 1.25%
• New issue more than 12 times oversubscribed
• Net proceeds will be used to refinance existing indebtedness, finance M&A transactions and general corporate purposes

Berlin, 24 April 2020. Deutsche Wohnen SE ("Deutsche Wohnen") today successfully placed EUR 1 billion senior unsecured fixed rate notes (the "Notes") with a 5-year and a 10-year maturity and an average 1.25% fixed coupon (1.0% for the Notes due 2025 and 1.5% for the Notes due 2030). The Notes were placed with institutional investors across Europe with the orderbook at pricing being more than 12 times oversubscribed underlining the strong support from the capital markets for Deutsche Wohnen.

The net proceeds will be used to refinance existing indebtedness, finance M&A transactions, in particular the recently announced acquisition of a project development platform and general corporate purposes.

The Notes have a denomination of EUR 100,000 each and are expected to be listed on the regulated market of the Luxembourg Stock Exchange (Bourse de Luxembourg). Deutsche Bank, Goldman Sachs International, J.P. Morgan, BNP Paribas and UniCredit acted as Joint Bookrunners on the transaction.

Philip Grosse, CFO of Deutsche Wohnen: "With an order book in excess of EUR 12 billion, this transaction underlines in an impressive way the trust of the capital markets in the resilience of our business model. Despite the challenging environment in consideration of the Corona crisis, we have been able to successfully place the bonds with institutional investors at highly attractive terms, setting a clear benchmark in the market. In line with our conservative financing strategy, we have covered all material upcoming maturities until 2023."

The final prospectus for the Notes, when published, will be available on www.bourse.lu/home as well as on the Investor Relations webpage of Deutsche Wohnen on www.ir.deutsche-wohnen.com.

 

Deutsche Wohnen

Deutsche Wohnen is one of the leading publicly listed property companies in Germany and Europe. Its operating focus is on managing and developing its portfolio, concentrating on residential properties. As of 31 December 2019, its portfolio comprised 164,044 units, of which 161,261 were residential and 2,783 commercial. Deutsche Wohnen is part of Deutsche Börse's MDAX index and also features in the important indices EPRA/NAREIT, STOXX Europe 600, GPR 250 and DAX 50 ESG.

Important notice

This announcement is an advertisement for the purposes of Regulation (EU) 2017/1129 (the "Prospectus Regulation").

This publication may not be published, distributed or transmitted, directly or indirectly, in the United States of America (including its territories and possessions), Canada, Japan or Australia or any other jurisdiction where such announcement could be unlawful. The distribution of this announcement may be restricted by law in certain jurisdictions and persons who are in possession of this document or other information referred to herein should inform themselves about and observe any such restrictions. Any failure to comply with these restrictions may constitute a violation of the securities laws of any such jurisdiction.

This publication does not constitute an offer of, or a solicitation of an offer to purchase, securities of Deutsche Wohnen SE in the United States of America, Germany or any other jurisdiction. Neither this announcement nor anything contained herein shall form the basis of, or be relied upon in connection with, an offer in any jurisdiction. The securities referred to herein may not be offered or sold in the United States of America in the absence of registration or an exemption from registration under the U.S. Securities Act of 1933, as amended (the "Securities Act"). The securities of Deutsche Wohnen SE have not been, and will not be, registered under the Securities Act.

In the United Kingdom, this announcement is only directed at persons who (i) are investment professionals falling within Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (as amended) (the "Order") or (ii) are persons falling within Article 49(2)(a) to (d) of the Order (high net worth companies, unincorporated associations, etc. (all such persons together being referred to as "Relevant Persons")). This document must not be acted on, or relied upon, by persons who are not Relevant Persons. Any investment or investment activity to which this document relates is available only to Relevant Persons and will be engaged in only with Relevant Persons.

No action has been taken that would permit an offering or an acquisition of the securities or a distribution of this announcement in any jurisdiction where such action would be unlawful. Persons into whose possession this announcement comes are required to inform themselves about and to observe any such restrictions.

Solely for the purposes of each manufacturer's product approval process, the target market assessment in respect of the Notes has led to the conclusion that: (i) the target market for the Notes is eligible counterparties and professional clients only, each as defined in Directive 2014/65/EU (as amended, "MiFID II"); and (ii) all channels for distribution of the Notes to eligible counterparties and professional clients are appropriate. The Notes are not intended to be offered, sold or otherwise made available to and should not be offered, sold or otherwise made available to any retail investor in the European Economic Area ("EEA") or the United Kingdom. For these purposes, a "Retail Investor" means a person who is one (or more) of: (i) a retail client as defined in point (11) of Article 4(1) of MIFID II; (ii) a customer within the meaning of Directive (EU) 2016/97 (as amended, the "Insurance Distribution Directive"), where that customer would not qualify as a professional client as defined in point (10) of article 4(1) of MIFID II; or (iii) not a Qualified Investor as defined in the Prospectus Regulation. Consequently, no key information document required by Regulation (EU) No 1286/2014 (the "PRIIPs Regulation") for offering or selling the Notes or otherwise making them available to retail investors in the EEA or the United Kingdom has been prepared and therefore offering or selling the Notes or otherwise making them available to any retail investor in the EEA or the United Kingdom may be unlawful under the PRIIPs Regulation.

Deutsche Bank Aktiengesellschaft, Goldman Sachs International, J.P. Morgan Securities plc, BNP Paribas und UniCredit Bank AG (together, the "Joint Bookrunners") are acting exclusively for Deutsche Wohnen in connection with the offer of the Notes. The Joint Bookrunners will not regard any other person as their respective client in connection with the offer of the Notes and will neither be responsible, nor provide protection, to anyone other than Deutsche Wohnen, nor will the Joint Bookrunners provide advice to anyone other than Deutsche Wohnen in relation to the offer of the Notes, the contents of this announcement or any other matter referred to herein.

In connection with the offer of the Notes, the Joint Bookrunners as well as any of their affiliates, acting as investors for their own accounts, may subscribe for or purchase securities of Deutsche Wohnen and may otherwise deal for their own accounts. Accordingly, references to the securities being issued or sold should be read as including any issue, offer or sale to the Joint Bookrunners as well as any of their affiliates acting as investors for their own accounts. In addition, the Joint Bookrunners or their respective affiliates may enter into financing arrangements and swaps with investors in connection with which the Joint Bookrunners or their affiliates may from time to time acquire, hold or dispose of shares or securities of Deutsche Wohnen. The Joint Bookrunners do not intend to disclose the extent of any such investment or transactions, unless there is a legal or regulatory obligation to do so.

None of the Joint Bookrunners or any of their respective directors, officers, employees, advisers or agents accept any responsibility or liability whatsoever for, or makes any representation or warranty, express or implied as to, the truth, accuracy or completeness of the information in this announcement (or whether any information has been omitted from this announcement) or, with limited exception, any other information relating to Deutsche Wohnen, its subsidiaries and affiliated companies, whether written, oral or in visual or electronic form, or any damage howsoever arising from any use of this announcement or its contents or otherwise arising in connection therewith.

To the extent that this document contains forward-looking statements, these are not facts and are recognisable by such words as 'will', 'expect', 'believe', 'estimate', 'intend', 'endeavour', 'assume' and similar expressions. These statements express the intentions, opinions or current expectations and assumptions of Deutsche Wohnen and the individuals acting in concert with it. The forward-looking statements are based on current plans, estimates and forecasts that Deutsche Wohnen and the individuals acting in concert with it have made to the best of their knowledge, but do not make any claims as to their future accuracy. Forward-looking statements are subject to risks and uncertainties that are generally difficult to predict and are usually not within the control of Deutsche Wohnen or the individuals acting in concert with it. It should be remembered that the actual results or consequences may differ considerably from those mentioned or contained in the forward-looking statements.