Landsec’s wholly-owned subsidiary Land Securities Capital Markets has launched and priced a £350m green bond.
The bond has a maturity of 10 years, paying a coupon of 4.625% and representing a spread of 97 basis points over the reference gilt rate. The company said the new bond further strengthens its financial position and extends its weighted-average debt maturity to 9.8 years.
The proceeds from the bond will be used to repay part of the drawn element of the company’s revolving credit facility, resulting in an immediate saving in interest costs.
Vanessa Simms, chief financial officer of Landsec, said: “This transaction further enhances Landsec’s strong financial capacity, flexibility and maturity profile. This is our second bond issuance of the year, and in both cases, the order books were multiple times over-subscribed with competitive pricing, demonstrating the strength of demand for our credit. Landsec remains well-placed to fund its development programme and investment in acquisition opportunities.”
