SEGRO prices £350m bond

SEGRO prices £350m bond

SEGRO has priced a £350 million, 19-year senior unsecured bond issue, at 175 basis points above gilts, with an annual coupon of 5.125 per cent.

The bond issuance, which was carried out under SEGRO’s Medium Term Note Programme, was almost six times oversubscribed.

The proceeds of the issue will principally be used for general corporate purposes, said the REIT.

The pro forma cost of debt based on the position at 30 September 2022 is 2.2 per cent (30 September 2022: 2.1 per cent) and the average debt maturity increases to 9.1 years (30 September 2022: 8.2 years). This transaction also increases the fixed element of our interest rate exposure to 78 per cent (86 per cent including interest rate caps).

Soumen Das, SEGRO Chief Financial Officer, commented: “We appreciate the strong support from investors for our first Sterling bond issuance since 2017, which provides valuable, long-duration liquidity to fund our development pipeline to support the continued occupier strength we are seeing across our markets. The strength of SEGRO’s investment case and capital markets access means we have been able to raise £2.1 billion of new, long-term debt funding at SEGRO and SELP this year, at an average cost of debt of 3.0 per cent with an average duration of almost nine years.”