Cofinimmo has announced the launch of an offering of senior unsecured convertible bonds. The initial amount is EUR 150 mln, with a potential increase by another EUR 50 mln if the extension option is exercised.

The listed Belgian real estate company said it will use the net proceeds as part of a broader plan to fund capital expenditure, diversify its sources of funding by refinancing credit lines and for general corporate purposes.

The convertible bonds will be issued by Cofinimmo and will have a maturity of 5 years. The coupon is expected to be between 2.875% and 3.375% payable annually in arrear. The convertible bonds will entitle their holders to receive Cofinimmo ordinary shares at a ratio of one share per bond.

The initial conversion price is expected to be set at a premium of 12.5% - 17.5% above a reference share price equal to the volume-weighted average price of the company's ordinary shares on Euronext Brussels from launch to pricing.

The bonds will be rated BBB by Standard & Poor's.

JP Morgan Securities and BNP Paribas Fortis are acting as Joint Global Coordinators and joint bookrunners for the offering. Barclays Capital, KBC Securities and Daiwa Capital Markets Europe are acting as joint bookrunners.