Pestana issues hotel industry’s first ‘green bonds’
Portuguese multinational hotelier Grupo Pestana has become the first hotel group in the world to issue ‘green bonds’, in accordance with the International Capital Markets Association (ICMA).
The bonds are being issued to the value of €60 million, with an interest rate of 2.5 per cent over six years. The offer is being allocated to 30 national and international institutional investors.
As a result of the high interest shown by the European market, Pestana Hotel Group’s issuance of ‘green bonds’ was a tremendous success, with demand three times the market offering.
As a result, the initially planned amount of €50 million was increased to €60 million. Pestana Hotel Group, whose operations include timeshare arm Pestana Vacation Club, was advised by BBVA and Cuatrecasas throughout the process.
Axesor rated Pestana Hotel Group with a value of BBB, indicating a stable outlook as well as positioning the brand as “investment grade” and one of the lowest risk investments on a worldwide scale.
Certified by DNV.GL second-party opinion, the ‘green bonds’ are issued as an indicator for financing investments in projects that respect sustainability principles. The funds raised will be used to refinance two innovative sustainability projects – Pestana Tróia Eco-Resort and Pestana Blue Alvor.
Pestana Tróia Eco-Resort is located in a natural reserve, featuring a 2km beachfront overlooking the Atlantic Ocean as well as a pine forest that was developed according to sustainable principles.
These principles were applied consistently throughout the construction process, from the materials used to the detailed accounting for waste treatment, energy use and water consumption.
Pestana Blue Alvor, which was also built according to the best environmental practices, is the first all-inclusive resort developed from the ground up in this sustainability concept, and the property is located in Algarve.
José Theotónio, the group’s CEO, said: “For Pestana Hotel Group, this has been a truly gratifying process across the board.
“We are thrilled with the outcome. In addition to being a worldwide pioneer in the hotel industry for carrying out this achievement of ‘green bonds’ issuance, the low fixed rate for a period of over six years and our achieved ratings are such motivating reasons for our brand to continue achieving new heights.”