British Land is raising up to £400m of unsecured five-year money through a convertible bond issue that will pay interest of just 1.5%.
The UK’s second-largest REIT said the initial conversion rate for the senior bonds into BL ordinary shares had been set at 693.07p, a premium of 31.25% to the average price of the shares from launch.
BL will use the proceeds to fund the £129.6m purchase of the Clarges Estate site in Mayfair, W1, repay debt relating to recent acquisitions and invest in its development pipeline.
UBS is sole global coordinator; UBS, Morgan Stanley and the Royal Bank of Scotland are joint bookrunners.
bridget.o’connell@estatesgazette.com
