Sirius Real Estate has raised €350m from a senior unsecured corporate bond issuance.
The bond, which matures in 2032, carries a coupon of 4% and is expected to be rated BBB by Fitch. Sirius said the issuance was approximately five times oversubscribed.
The new bond will increase Sirius’ weighted average debt maturity to 4.2 years from 3.5 years at 30 September 2024, with the company’s total average cost of debt rising to 2.6%.
Sirius said the proceeds of the issuance will be principally used to refinance existing debt as well as for general corporate purposes, including funding a “significant pipeline” of potential acquisitions in Germany and the UK.
Chris Bowman, chief financial officer of Sirius, said: “We appreciate the strong support that we have received from institutional investors for this €350m bond issue which provides valuable, long-duration liquidity to enable us to continue executing our value-add growth plan.
“We remain well within our net LTV guidance of 40% or below. The strength of Sirius’ investment case and capital markets access demonstrates investor confidence in our ability to generate strong income returns and our longer-term growth strategy.”
Deutsche Bank, HSBC and Morgan Stanley acted as joint bookrunners on the transaction and Lazard acted as financial adviser.
