SEGRO has launched €1.15bn (£870m) of green bonds after being six-times oversubscribed.
The launch, the debut issuance from its recently announced European Medium-Term Note programme, is split into two tranches.
The first is a €650m, four-year bond, priced at 70 basis points above euro mid-swaps with an annual coupon of 1.25%. The second is for €500m, with an eight-year term, priced at 110 basis points above euro mid-swaps with an annual coupon of 1.875%.
The proceeds will be used to finance or refinance eligible green projects outlined in SEGRO’s Green Finance Framework, including its continuing development programme, as well as providing funding for general corporate purposes.
CFO Soumen Das said: “We appreciate the strong support that we have received for the first bond under our new EMTN programme with the coupons in line with our low 1.5% average cost of debt. The fundamental trends underpinning the occupier market remain strong, creating attractive and profitable investment opportunities for our business. The proceeds of this issuance will enable us to continue to respond to our customers’ increased requirements for modern space built to the highest levels of sustainability standards.”
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