PARIS, FRANCE: SEGRO plc has introduced the launch and pricing of a £350 million, 19-year senior unsecured bond issue, priced at 175 foundation factors 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 firm purposes.
The professional forma cost of debt based on the place at 30 September 2022 is 2.2 per cent (30 September 2022: 2.1 per cent) and the common debt maturity will increase to 9.1 years (30 September 2022: 8.2 years). This transaction additionally will increase the fixed element of our rate of curiosity publicity to seventy eight per cent (86 per cent together with rate of curiosity 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’re seeing throughout our markets. The strength of SEGRO’s funding case and capital markets entry means we have been able to raise £2.1 billion of new, long-term debt funding at SEGRO and SELP this year, at an common cost of debt of 3.0 per cent with an common duration of almost 9 years.”
SEGRO is a UK Real Estate Investment Trust (REIT), listed on the London Stock Exchange and Euronext Paris, and is a number one owner, supervisor and developer of modern warehouses and industrial property. It owns or manages 9.7 million sq. metres of space (104 million sq. feet) valued at £23.8 billion serving customers from a variety of industry sectors. Its properties can be found in and round main cities and at key transportation hubs within the UK and in seven different European countries.
For over 100 years SEGRO has been creating the space that enables extraordinary issues to happen. From modern big field warehouses, used primarily for regional, nationwide and worldwide distribution hubs, to city warehousing located near main inhabitants centres and enterprise districts, it provides high-quality assets that allow its customers to thrive.
A dedication to be a force for societal and environmental good is integral to SEGRO’s purpose and strategy. Its Responsible SEGRO framework focuses on three long-term priorities the place the firm believes it could make the best impact: Championing Low-Carbon Growth, Investing in Local Communities and Environments and Nurturing Talent.