SEGRO prices €500m bond

SEGRO has priced a €500m (£422m) senior unsecured bond, a deal that was more than six times oversubscribed by investors. The industrial investor-developer priced the eight-year bond at 123 basis points above euro mid-swaps with an annual coupon of 3.5%. SEGRO will use the proceeds to pay down other debt, principally bank loans maturing in early 2026. This will take the average cost of its borrowing down to 2.6% from 2.7% at 30 June 2024, and its average duration up to 7.3 years from 6.8 years. Chief financial officer Soumen Das 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.”