U.S. shopping center giant Simon Property Group announced Tuesday the launch of a €750 million bond issue exchangeable for Klépierre shares.

In a press release, Simon states that the bonds, issued by its European subsidiary Simon Global Development, will have a three-year maturity.

The final terms and conditions will be announced by the end of the day, at the close of the placement, but are expected to show a premium of 20% to Klépierre's weighted share price during Tuesday's trading session.

Analysts expect Simon to reduce its stake in Klépierre by around 9.1%, from 28.7% at the time of its initial investment in 2012 to 22.4% today.

The placement weighed on Klépierre's share price, which fell 4.8% on Tuesday morning, the second biggest drop on the SBF 120 index.

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