CBRE Investment Management Fund Issues Inaugural €500 Million Green Bond

CBRE Investment Management (“CBRE IM”), on behalf of a fund sponsored by the firm, has issued an inaugural Green Bond, raising €500 million in senior unsecured notes with a seven year tenor. The bond issuance follows the fund’s €1 billion unsecured debt restructuring, completed in March 2025, and marks a significant final milestone in the evolution of the revised debt strategy. The Green Bond was issued off the fund’s Euro Medium Term Note (EMTN) programme.

The seven-year Green Notes are rated A- by Fitch and carry a fixed coupon of 3.500%. The re-offer spread was set at mid-swap plus 115 basis points, implying a negative 10 basis points new issue concession compared to comparable issuers in the sector.

Proceeds from the issuance will be used to refinance the fund’s existing debt, including its €450 million bridge facility, with the remaining proceeds allocated to pay down a revolving credit facility. The order book reached over €4 billion from more than 200 unique investor orders and was oversubscribed eight times at its peak, and more than four times at final pricing.

Tom Berens, Team Lead, Treasury & Debt Financing EMEA at CBRE IM, commented: “This bond issuance reflects the fund’s strategic shift from local, asset-backed financing to scalable, flexible and easier-to-manage unsecured debt. The EMTN framework enables the fund to better time its market entry. Having access to the capital markets will diversify the debt capital structure and support its growth ambitions. The seven year tenor also provides a valuable extension of the debt maturity profile, while the bond will act as a very useful reference point for potential follow-up bond transactions.

We were very pleased with the strong interest from bond investors. The oversubscription and strong pricing are testament to the quality of the portfolio and the strength of the long-term strategy.”

To align with CBRE IM’s sustainability ambitions and those of the fund, the bond has been structured as a Green Bond. The intention is to allocate 100% of the net proceeds from the issuance of each green instrument (loan, bond, or any other financing instrument) to green assets and capex (“Eligible Green Portfolios”) satisfying one or more of the eligibility requirements in accordance with the fund’s Green Finance Framework. The Green Finance Framework has been assessed and approved for accuracy and integrity by Sustainalytics, acting as SPO (“Second Party Opinion”) provider.

The fund’s strategic banking partners ABN AMRO, BNP Paribas, Crédit Agricole CIB, HSBC, and ING acted as Active Joint Bookrunners, with BNP Paribas and ING serving as Global Coordinators on this inaugural transaction. Crédit Agricole CIB also acted as Green Advisor.

Linklaters LLP advised CBRE IM. Clifford Chance LLP advised the Active Joint Bookrunners.

About CBRE Investment Management
CBRE Investment Management is a leading global real assets investment management firm with $155.3 billion in assets under management* as of June 30, 2025, operating in 20 countries around the world. Through its investor-operator culture, the firm seeks to deliver sustainable investment solutions across real assets categories, geographies, risk profiles and execution formats so that its clients, people and communities thrive.

CBRE Investment Management is an independently operated affiliate of CBRE Group, Inc. (NYSE:CBRE), the world’s largest commercial real estate services and investment firm (based on 2024 revenue). The company has more than 140,000 employees (including Turner & Townsend employees) serving clients in more than 100 countries. CBRE Investment Management harnesses CBRE’s data and market insights, investment sourcing and other resources for the benefit of its clients. For more information, please visit www.cbreim.com.

*Assets under management (AUM) refers to the fair market value of real assets-related investments with respect to which CBRE Investment Management provides, on a global basis, oversight, investment management services and other advice and which generally consist of investments in real assets; equity in funds and joint ventures; securities portfolios; operating companies and real assets-related loans. This AUM is intended principally to reflect the extent of CBRE Investment Management’s presence in the global real assets market, and its calculation of AUM may differ from the calculations of other asset managers and from its calculation of regulatory assets under management for purposes of certain regulatory filings.