Citycon Secures Green Loan to Enhance Financial Strategy

Citycon's Strategic Financial Move

Citycon, a leading entity in the Nordics and Baltics, has secured a SEK 1.02 billion (€89.5 million) green term loan. Partnering with pbb Deutsche Pfandbriefbank and Helaba, this loan has a seven-year term, using Liljeholmstorget Galleria as collateral. This financial maneuver is integral to Citycon's strategy to enhance liquidity and manage debt efficiently, positioning the company favorably amidst rising interest rates.

Enhancing Liquidity and Debt Management

In April 2023, Citycon expanded its credit facilities to €650 million to facilitate bond repurchasing. This step aims to cushion the impact of increasing interest rates on earnings, showcasing the company's proactive approach to maintaining a solid balance sheet. Citycon's financial strategies reflect a commitment to sustainable and robust financial health.

Focus on Core Assets and Divestiture Strategy

Citycon's divestiture strategy, initiated in December 2022, involved selling €120 million worth of non-core assets. Negotiations for additional sales worth €380 million are underway. This aligns with the company's focus on prime urban assets near public transport networks, contributing to a portfolio valued at approximately €4.2 billion.

Commitment to Sustainability and Financial Stewardship

Citycon's CFO highlighted the favorable terms of the green loan, emphasizing its positive contribution to the company's financial strategies. The refinancing initiative underscores Citycon’s dedication to sustainability and prudent financial management as it navigates the dynamic real estate market. This move solidifies Citycon's position as a leader in sustainable financial practices within the industry.