Hammerson has announced the pricing of a seven-year £250m bond.
The bond has a maturity on 8 June 2033 at 107 basis points over the 4.125% Treasury gilt 2033 with an annual coupon of 5.875%. The issuance was more than four times covered with a peak order book of more than £1.1bn.
Hammerson has also concurrently entered into interest rate swaps to convert the 5.875% fixed coupon into a floating rate of SONIA plus a margin of 131 basis points, resulting in a net initial rate of 5.04%.
This is in line with Hammerson’s interest rate risk management strategy and reduces the proportion of the group’s gross debt at fixed rates of interest from 95% to 84%.
