AXA IM Alts has announced the issuance of a €500m green bond. The transaction was directed through the alternative asset manager’s logistics fund – AXA Logistics Europe Master. The issuance has been met with strong investor interest, the fund says.
The bond, which Fitch rated as A- and carries a 2031 maturity and coupon of 3.375%, was over six times oversubscribed.
This marks the fund’s second green bond issuance, building on a 2021 transaction. The proceeds will be used to purchase logistics properties, which AXA IM Alts says will have ‘best in class sustainability features’.
In a statement, the asset manager says the proceeds will also go towards investments in energy efficiency, biodiversity and the installation of solar panels.
“We believe that the exceptionally strong demand we received for this new green bond, being more than six times oversubscribed, is a powerful endorsement of the quality of the portfolio our team has carefully curated for AXA Logistics Europe since its launch in 2019”, says Timothé Rauly, AXA IM Alts global co-head of real estate.
The portfolio includes 150 logistics real estate assets, with an occupancy rate of 96%, spread across western Europe. The issuance was aligned with the AXA Logistics Europe’s in-house green finance framework which is aligned with the ICMA’s green bond principles.
