SEGRO has priced a £350m, 19-year senior unsecured bond issue, the proceeds of which will be used to fund its development pipeline.
The bond issuance, which was carried out under SEGRO’s medium term note programme, was priced at 175 basis points above gilts, with an annual coupon of 5.125% and was almost six times oversubscribed.
Soumen Das (pictured), SEGRO chief financial officer, said: “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 £2.1bn of new, long-term debt funding at SEGRO and SELP this year, at an average cost of debt of 3.0% with an average duration of almost nine years.”
