The renowned residential real estate group Vonovia announced pleasing news: They have issued a bond in British pounds for the first time. The unsecured bond has a volume of £400 million, a maturity of twelve years, and a coupon of 4.5 percent, generating significant interest.

According to company statements, the order book was oversubscribed more than 8 times and reached impressive peak sizes of £3.45 billion. With this move, Vonovia not only gains access to new investors but also benefits from arbitrage advantages in the Anglo-Saxon capital market.

Because by issuing in British pounds instead of Euros, the company can benefit from lower interest rates and increased investor interest.

This strategic decision does not come by chance: Currently, Vonovia has existing financings that will be due from 2025 onwards. The additional liquidity from the bond issuance will therefore be used to redeem these financings and thus optimize the long-term financing volume.

The positive prospects due to this measure are also reflected in the stock price: The Vonovia stock temporarily recorded an increase of 1.55 percent to 27.44 euros on XETRA.

With this bond issuance, Vonovia once again proves that they are a strong and innovative player in the financial market. The successful placement of the bond in British pounds emphasizes the strength and confidence of investors in the company and its future prospects. The officials at Vonovia can therefore look forward to a promising future.