M&G : European Property Fund launches first €500 million green bond

London, 16 September 2026 - M&G today announces the successful issuance of a €500 million first green bond by its €5.4 billion M&G European Property Fund¹ (the Fund), providing additional capacity for investment, acquisitions and refinancing. The transaction reflects the strength of the Fund's sustainability credentials, with €2.4 billion of assets currently eligible under its Green Finance Framework.

As a major investor across the UK, Europe and Asia, the Fund is M&G's flagship Continental European core diversified real estate strategy, investing across the offices, logistics, retail and living sectors. For 20 years, the Fund has been investing in high-quality assets across 12 European markets with a focus on delivering long-term value for investors.

The green bond attracted strong demand from a broad international investor base, with peak orders exceeding €2.1 billion from more than 120 investors. At final pricing, the issuance was 2.8x oversubscribed, enabling the Fund to secure five-year financing terms at a margin of 100 basis points. This demand demonstrates investor confidence in the Fund's strategy and the long-term opportunities across European real estate. The Fund's commitment to sustainable investing has also been independently recognised, with its Green Finance Framework receiving the highest possible 'Excellent' assessment from Sustainable Fitch, alongside an 'A-' Issuer Default Rating from Fitch Ratings².

Proceeds from the green bond will be used to fund new investment opportunities and eligible green projects, enhancing the sustainability, efficiency and long-term value of the portfolio at an attractive point in the real estate cycle. The Fund has committed to over €1bn of acquisitions across 11 transactions over the past 12 months, largely in the logistics and living sectors, whilst continuing to enhance the performance and resilience of existing assets through active asset management. Strong demand for high-quality space and limited new supply in many markets continues to generate opportunities for attractive long-term returns for investors.

Simon Ellis, Fund Manager, M&G European Property Fund, said: "The green bond marks an important milestone for the Fund as we approach its 20th anniversary. It reflects the scale, diversification and quality of the portfolio as well as our long-term strategy to invest in real estate with leading sustainability credentials. The additional financial firepower it provides comes at an attractive point in the market cycle and supports our ambition to build on more than €1 billion of acquisitions completed over the past 12 months."

Sally Hurst, Director, Debt Strategy & Origination at M&G Real Estate, said: "This successful debut bond issuance establishes an important new source of long-term funding for the Fund and broadens its financing options for the future. The scale of demand from institutional investors and the competitive terms achieved demonstrate the Fund's ability to access debt capital markets efficiently and create a strong foundation for future issuance."