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Segro PLC on Wednesday said it has priced a 19-year senior unsecured bond issue under its medium-term note programme, which was oversubscribed.
The London-based real estate investment trust said the £350 million issuance was price at 175 basis points above gilts with an annual coupon of 5.1%. It was almost six times oversubscribed, Segro said.
It said the proceeds of the issue will be principally used for general corporate purposes.
Segro’s average debt maturity has subsequently increased to 9.1 years, up 11% from 8.2 years on September 30. The transaction also increased the fixed element of its interest rate exposure to 78% or 86% including interest rate caps, up from 71% and 79% respectively.
‘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 £2.1 billion of new, long-term debt funding at Segro and SELP this year,’ said Chief Financial Officer Soumen Das, referring to Luxembourg-based joint venture Segro European Logistics Partnership.
Shares in Segro were down 0.1% to 807.80 pence in London on Wednesday morning.
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