Landsec to raise £350m with green bond

Landsec has issued a green bond to raise £350m to pay down its existing borrowing. The company’s Land Securities Capital Markets subsidiary priced the 10-year bond with a coupon of 4.625% and a spread of 97 basis points over the reference gilt rate. The issuance extends the REIT’s weighted-average debt maturity to 9.8 years. The proceeds will be used to repay part of the drawn element of the company’s revolving credit facility. Chief financial officer Vanessa Simms said: “This transaction further enhances Landsec’s strong financial capacity, flexibility and maturity profile. This is our second bond issuance of the year, and in both cases, the order books were multiple times over-subscribed with competitive pricing, demonstrating the strength of demand for our credit. Landsec remains well-placed to fund its development programme and investment in acquisition opportunities.”