Hammerson has issued a €700m (£605m) bond thought to be the largest sustainability-linked corporate debt facility in real estate.
The shopping centre owner will use the finance to repay existing facilities.
The bond has a six-year maturity and a 1.75% coupon.
The issuance was combined with tender offers announced on 20 May, with €500m 2% bonds due in 2022 and €500m 1.75% due in 2023.
It follows the completion of a £330m retail park sale to Brookfield this month, marking the investor’s exit from retail parks.
Himanshu Raja, chief financial officer at Hammerson, said: “The linking of the bond to our sustainability targets brings a stronger alignment between our financial and sustainability goals and we are pleased to have received a positive response to our bond, which was 2x covered.”
Hammerson’s senior unsecured debt is rated Baa3 by Moody’s and BBB+ by Fitch.
JP Morgan and MUFG acted as joint lead managers on the bond issuance. Hammerson is advised by Lazard & Co and EY Capital and Debt Advisory.
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