Paragon Banking Group PLC Closing of Green Bond (4899T)
March 25 2021 - 04:48AM
UK Regulatory
TIDMPAG
RNS Number : 4899T
Paragon Banking Group PLC
25 March 2021
25 March 2021
Paragon Banking Group PLC
Closing of Green Bond
Paragon Banking Group PLC ("Paragon") is pleased to announce
that it has today successfully completed the issuance of GBP150
million in Tier 2 Green Bonds, due 25 September 2031.
The notes have a credit rating of BB+ (Fitch), with an optional
redemption from 25 June 2026 to 25 September 2026.
A tender process was concurrently launched to repurchase
Paragon's existing GBP150 million 7.25% Tier 2 bond, ahead of its
scheduled optional call date of 9 September 2021. 87.3% of the
investors (GBP130.9 million) opted for their bonds to be
repurchased by Paragon on 25 March 2021.
The proceeds of the green bond will be allocated to green loans
incentivising landlords to mitigate the impact of climate change,
specifically Green Residential Real Estate loans in England and
Wales with an EPC rating of "A" or "B".
Nigel Terrington, Chief Executive, said: "We are the first UK
bank to issue subordinated green bonds and we are delighted to have
received overwhelming support from the investment community on our
plans to put sustainable lending at the heart of our strategy. This
Green Bond demonstrates our commitment to support more landlords
with products aimed at improving the energy performance of their
rental properties, reducing carbon emissions as well as energy
bills for tenants."
The notes will bear interest of 4.375% per annum until 25
September 2026, and then at a rate equal to the initial margin of
3.956% per annum plus the applicable 5 year benchmark gilt rate.
Interest is payable on 25 March and 25 September in each year,
commencing on 25 September 2021.
The Notes will be traded on the Main Market of the London Stock
Exchange and the Sustainable Bond Market of the London Stock
Exchange.
Paragon's Green Bond Framework conforms with the ICMA Green Bond
Principles and has been validated by Sustainalytics, a leading ESG
ratings provider. Additionally, Paragon will publish an annual
report detailing the allocation of the proceeds to the green loans
and the associated carbon savings.
Barclays, BofA Securities and UBS Investment Bank acted as lead
managers on the transaction.
For further details please contact:
Ciara Murphy, Deputy Company Secretary
0797 498 0152
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