SEGRO has priced a €500m senior unsecured bond issue for an eight-year term. The bond issuance, which was priced at 123 basis points above euro mid-swaps with an annual coupon of 3.5%, was more than six times subscribed at peak.
The proceeds of the issue will principally be used to refinance existing debt, with a focus on bank loans maturing in early 2026.
As a result, SEGRO said the average cost of its debt has fallen to 2.6%, from 2.7% at 30 June 2024, and the average duration has increased to 7.3 years, from 6.8 years at 30 June 2024.
Soumen Das (pictured), chief financial officer at SEGRO, said: “We appreciate the strong support that we have received from investors for the new bond issue in achieving an attractive spread and all-in coupon. The bond enhances our balance sheet, reducing our average cost of debt and extending the average maturity.”
