SEGRO on Thursday announced the launch and pricing of a ten year, €500 million senior unsecured green bond issue.
The bonds, which were eight times oversubscribed, were priced at 55 basis points above euro mid-swaps and have an annual coupon of 0.5 per cent.
This is SEGRO’s first bond in the euro market and its first green bond, following from the green bond issued by SEGRO European Logistics Partnership in May 2021.
The proceeds of the issue will principally be used to finance and/or refinance Eligible Green Projects as outlined in the SEGRO Green Finance Framework, including the continued development programme, as well as providing funding for general corporate purposes.
“We are delighted with the support for SEGRO’s first green and first euro-denominated bond issue, achieving a 0.5% coupon and 10 year maturity. The level of oversubscription we received for the issuance underlines investors’ recognition of the strength of our business and the importance they rightly place on sustainable investment. The proceeds will be invested in line with our Responsible SEGRO framework including the construction of new properties with high sustainability credentials through our very active development programme,” said Soumen Das, SEGRO Chief Financial Officer.