SEGRO has issued €500m (£446m) in unsecured bonds for the SEGRO European Logistics Partnership joint venture.
The company said that the seven-year bonds, which have an annual coupon of 1.25%, will mostly be used to prepay the majority of SELP’s secured bank facilities.
SELP, a joint venture between SEGRO and Canadian pension fund PSP Investments, has also agreed a €200m revolving credit facility with BNP Paribas and RBS as part of its refinancing deal.
It hopes to cut the cost of third-party financing in the joint venture by 110 basis points from 2.7%.
Justin Read, group director of SEGRO, said: “We are very pleased by the depth and breadth of support for this inaugural SELP bond issue, which is a testament to the high quality assets and cash flows of the joint venture. The issue allows SELP to finance itself both at a lower cost and more efficiently.”
BNP Paribas, Morgan Stanley and RBS acted as joint lead managers on the transaction.
Last month, SEGRO raised £325m through a share issue to fund nearly £500m in developments in the coming 18 months.
From September: £325 SEGRO share issue bolsters UK commercial market
From July: SEGRO NAV edges up 2.6%
From June: SEGRO sells in Europe
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