Hammerson has issued its first sterling bond in nearly ten years with a £350m ten-year note at a 3.5% coupon.
The bond was two times oversubscribed and was priced at 172bp over the reference gilt.
The company has swapped the sterling issued bond’s coupon and nominal amount into euros, which has resulted in the net cost to the company of 2.5% over the life of the bond.
The issue allows Hammerson to maintain its target financing costs and extend the maturity of its debt by one year.
The company has also maintained its overall LTV to within its guideline levels.
Timon Drakesmith, chief financial officer of Hammerson, said: “This transaction is the first sterling bond issue by Hammerson for almost ten years and represents a welcome return to a home funding market. We are appreciative of the support shown by our key bond investors and our relationship banks have assisted in swapping the coupon to a low 2.5% level in euros.”
BNP Paribas, HSBC, Lloyds Bank, Barclays, MUFJ and Santander Global Banking & Markets acted as joint bookrunners.
