Land Securities Capital Markets PLC, a wholly-owned subsidiary of Landsec, has launched and priced a £350 million green bond.
The green bond has a 10-year maturity and offers a 4.625% coupon, with a spread of 97 basis points above the reference gilt rate, pending final legal documentation.
The new bond extends the company’s weighted-average debt maturity to 9.8 years.
The proceeds will be used to repay part of the drawn element of the company’s revolving credit facility, resulting in an immediate saving in interest costs.
Vanessa Simms, Chief Financial Officer at Landsec said: “This transaction further enhances Landsec’s strong financial capacity, flexibility and maturity profile. This is our second bond issuance of the year, and in both cases, the order books were multiple times over-subscribed with competitive pricing, demonstrating the strength of demand for our credit. Landsec remains well-placed to fund its development programme and investment in acquisition opportunities.”
