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HG bonds: AvalonBay Communities prices 7-year green bonds; terms


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HG bonds: AvalonBay Communities prices 7-year green bonds; terms

AvalonBay Communities Inc. today completed an upsized $400 million public offering of 1.90% seven-year green notes at T+55.

The apartment communities real estate investment trust intends to allocate an amount equal to the net proceeds to finance or refinance, in whole or in part, one or more new or existing eligible green projects, which fall under the headings of Green Buildings, Energy Efficiency, Renewable Energy, Sustainable Water and Wastewater Management, and Waste Management, in accordance with the International Capital Markets Association Green Bond Principles 2021, according to regulatory filings.

Pending such allocation, the REIT may use the net proceeds to reduce indebtedness outstanding under its $1.75 billion unsecured revolving credit facility, and for general corporate purposes, which may include the acquisition, development and redevelopment of apartment communities and repayment and refinancing of other indebtedness.

The new offering marks the company's second offering of green bonds in two months. On Sept. 8, 2021, it completed a $700 million offering of 2.05% long 10-year notes due Jan. 15, 2032, at T+73. The issue changed hands last week at tighter spread levels, at T+67-68, but at yields above the coupon rate, in the 2.25% area, according to MarketAxess.

The issuer's A-/A3 ratings profile reflects stable outlooks on both sides.


Issuer AvalonBay Communities Inc.
Ratings A-/A3
Amount $400 million
Issue SEC-registered senior green notes
Coupon 1.900%
Price 99.869
Yield 1.920%
Spread T+55
Maturity Dec. 1, 2028
Call Make-whole T+10 until notes are callable at par from two months prior to maturity
Trade Nov. 8, 2021
Settle Nov. 18, 2021
Px Talk Guidance T+60 area (+/- 5 bps); IPT T+80 area
Notes Proceeds for eligible green projects, and to repay revolver and for general corporate purposes; upsized from $350 million.