Merlin Properties completes €550 million green bond issuance with 3.50% coupon, 8-year maturity. Discover how the funds will support sustainable projects, data center growth, and the company’s ambitious ESG goals.
Merlin Properties Issues €550 Million Green Bonds to Fund Green Projects and Data Centers
Merlin Properties, a leading real estate investment trust (REIT) specializing in the management of leased assets, has successfully completed the issuance of unsecured ordinary non-subordinated green bonds in the Euromarket. The total nominal amount of the offering is €550 million, reaffirming Merlin’s commitment to sustainability and innovation within the real estate sector.
Key Details of the Green Bond Issuance
- Total Nominal Amount: €550 million
- Maturity: 8 years
- Annual Coupon: 3.50%
- Issue Price: 99.5% of nominal value
- Spread: 105 basis points over midswap
- Governing Law: English law
- Expected Subscription/Disbursement Date: September 4, 2025
- Trading Venue: Expected admission to Luxembourg Stock Exchange
Purpose of the Green Bond
The proceeds from this green bond issuance will be used to finance and refinance eligible green projects in accordance with Merlin Properties’ ‘Green Financing Framework.’ The focus areas include:
- Accelerating growth in the data center category
- Supporting general corporate needs
- Partial redemption of the green bond maturing in November 2026
These initiatives further Merlin’s ambition to lead in sustainable property management and ESG (environmental, social, governance) practices.
Strong Financial Performance Backs Expansion
Merlin Properties remains one of the most active players in the market this year. The issuance comes on the back of robust financial results:
- Net Profit (H1 2025): Over €500 million (compared to €132 million the previous year)
- Revenue (H1 2025): €275.3 million
- Occupancy Rate: 95.4%
These results underscore Merlin Properties’ resilience and operational excellence, making them a reliable issuer in the green finance domain.
Strategic Leasing Deals Strengthen Portfolio
Merlin also made headlines recently for concluding one of Madrid’s most significant office leasing deals. The company signed a long-term agreement with energy giant Naturgy, leasing 100% of the Josefa Valcárcel 48 building encompassing nearly 20,000 square meters of office space. This move solidifies Merlin’s reputation as a partner of choice for both global corporations and sustainability-focused investors.
The €550 million green bond issuance cements Merlin Properties’ position at the forefront of sustainable real estate investing in Europe. By channeling funds into green projects and expanding key infrastructure areas such as data centers, Merlin continues to demonstrate responsible growth and a strong commitment to environmental stewardship.
If you are an investor or sustainability advocate, keep an eye on Merlin Properties as they pave the way for greener real estate in Spain and beyond.
