Foncière des Régions (FdR) has launched a convertible bond offering for EUR 480 mln which may be increased to EUR 550 mln in the event of the full exercise of the extension option. The bonds are due on 1 January 2017.

The net proceeds from the bond issue will be used to diversify the company's funding sources and to extend its debt maturity profile.

FdR shareholders will be entitled to subscribe to the offer during the priority subscription period running from 16 - 18 May 16 2011 for a maximum amount corresponding to their respective stake in the share capital of FdR. Delfin, the holding company of Leonardo del Vecchio who holds 28.92% of FdR, has announced it will subscribe in proportion to its pro rata stake in the company's share capital with a maximum limit of EUR 150 mln.

The final terms of the offering will be announced on May 19, 2011. This issue is lead-managed by BofA Merrill Lynch acting as global coordinator, joint lead manager and joint bookrunner, and by HSBC, Lazard-Natixis and UniCredit acting as joint lead managers and joint bookrunners.