Pestana First Hotel Group to Issue Green Bond €60m

Main Photo: The Pestana Vintage Porto

Date: September 2019

Location: Mainly Europe, HQ Portugal (16 countries)

Name: Pestana Group

No. of Keys: 11,000

Who did What: Grupo Pestana SGPS SA has today become the first hotel group in the world to make a green bond issue, in accordance with the principles of the International Capital Markets Association (ICMA).

This is a €60m issue, with an interest rate of 2.5%, 6 years, with the offer placed with about 30 national and international institutional investors.

The issue, due to the high interest in the European market, was a success, with demand exceeding supply three times. The initially planned amount of €50m has been increased to €60m. Pestana Group was advised by BBVA and Cuatrecasas.

Axesor has rated the Pestana Group rated BBB with stable Outlook, which qualifies it within the narrow investment grade group and as one of the lowest risk players in the world hotel market.

Interesting: The green bond rating has been certified by DNV.GL issuing a second party opinion. Green bonds are issued to finance investments in projects that respect the principles of sustainability.

The funds raised with the issue will be used to refinance two innovative projects developed from scratch: Pestana Tróia Eco-Resort and Pestana Blue Alvor.

The first is located in a Natural Reserve area, with a beach front of 2 km Atlantic and pine forest, having been developed according to sustainable principles, applied consistently, in the construction process, in the materials used, in the preservation of the environment. , concern for waste treatment or energy and water consumption.

Also built according to the best environmental practices, Pestana Blue Alvor is the first all inclusive resort developed from the ground up in this concept in the Algarve.

“For Grupo Pestana, this was a virtuous process across the board that made us very happy. In addition to being the first in the world hotel industry market to carry out such an operation, issuance of green bonds, the low fixed rate for a period of 6 years and the rating achieved are another incentive to persevere in the Group’s solid path. ” says José Theotónio, CEO of Grupo Pestana.

The company initiated their PLANET GUEST program, Pestana Sustainability Program, as an aggregating concept that conveys the Pestana Group’s position as an organisation and collective of people that respects and values ​​the environment, society and corporate ethics.

The signature “ We are only Planet guests ” reflects our deep respect for the Planet and the awareness that the appreciation of natural resources is crucial to the future of our business.

In addition to the environmental dimension, PLANET GUEST also includes the social pillar, which includes activities supporting local communities, promoting education and culture and internal social responsibility, as well as entrepreneurship projects and the recovery and preservation of classified heritage.

THPT Comment: Great “first” for Pestana, this innovative hotel group. THPT are big eco-fans for sustainability in hotel development, so applause this move…who next?

First Seen: Pestana website

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