VGP NV Optimizes Capital Structure with €100 Million Bond Buyback

2026-01-16 companies

Antwerp, Friday, 16 January 2026.
Pan-European logistics developer VGP NV has successfully executed a strategic debt optimization, repurchasing €100 million of its outstanding 2027 green bonds as of January 16, 2026. High investor participation resulted in €176.4 million tendered, forcing a significant scaling factor of 59.1% to meet the capped acceptance volume. This move complements VGP’s recent €600 million green bond issuance—oversubscribed seven times—demonstrating robust market confidence as the company proactively extends its maturity profile and refines its capital structure.

Settlement Mechanics and Debt Reduction

Following the expiration of the tender offer at 5:00 p.m. CET on January 15, 2026, VGP confirmed that the settlement date for the repurchased bonds is expected to be January 20, 2026 [1][2]. With €176.4 million in aggregate principal validly tendered against the final acceptance amount of €100 million, the oversubscription necessitated a pro-ration factor of 59.1 percent [2]. Upon completion of this settlement, the total principal amount of the 2027 notes remaining outstanding will be €220.1 million [2]. This transaction effectively retires approximately 31.24 percent of the volume that was outstanding at the launch of the offer [1][2].

A Successful Maturity Extension

The buyback was contingent upon the satisfaction of the “New Issue Condition,” which VGP confirmed has been met as of today, January 16, 2026 [3][4]. This condition referred to the successful placement and settlement of new senior unsecured green bonds [3]. The new issuance, which matures on January 16, 2032, raised €600 million with a fixed coupon of 4 percent per annum [5][6]. By utilizing the proceeds from this longer-dated paper to retire a portion of the debt maturing in January 2027, the company has successfully extended its debt maturity profile, locking in capital for the next six years under its Sustainable Finance Framework [5][6].

Robust Market Demand

Investor appetite for VGP’s credit appears substantial, as evidenced by the order book for the new 2032 bonds. Demand exceeded €3.0 billion early in the process and reached €3.5 billion at final terms, representing an oversubscription rate of seven times the initial target size of €500 million [5][6]. This robust granular interest allowed VGP to upsize the deal to €600 million despite a pricing tightening of 35 basis points [5]. The transaction was managed by a banking syndicate including Belfius Bank, J.P. Morgan, and KBC Bank as joint global coordinators [5][6].

Strategic Portfolio Context

This financial engineering supports VGP’s broader operational footprint as a pan-European developer of logistics and semi-industrial properties. As of June 2025, the company reported a Gross Asset Value of €8.3 billion (including joint ventures) and a Net Asset Value (EPRA NTA) of €2.6 billion [1][6]. Operating across 18 European countries with a team of approximately 412 employees, VGP continues to balance its growth in the logistics sector with prudent capital structure management [1][6].

Sources

Green Bonds Corporate Debt