Scope rates NEPI Rockcastle on a subscription basis. To view Scope’s subscription rating and rating report or to register, please click here.

Initial price thoughts on the bonds went out at 225bp-area over mid-swaps. By the end of the morning, the book had built to more than EUR 1.4bn and price guidance was tightened to MS+205bp plus or minus 5bp, according to Bond Radar (www.bondradar.com). The issuer held investor calls earlier in the week, engaging with over 70 investors, having initially signalled an intention to issue eight or 10-year debt.

Concurrent with the new issue, NE Property B.V. issued an invitation to purchase for cash any and all of its outstanding EUR 500m 2.625% notes due 22 May 2023 (guaranteed by NEPI Rockcastle plc), subject to the completion of the new issue.

In Scope’s 29 September 2021 monitoring note, analyst Philipp Wass noted that NEPI Rockcastle’s rating is supported by the company’s scale as a medium-sized retail property group and the largest retail landlord in Central and Eastern Europe. Limited store closures during the pandemic kept profitability stable and the highest among peers, thanks to economies of scale and low vacancy rates. The company also benefits from a reasonably diversified pool of tenants.

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