SEGRO has priced a €750m (£626m) green bond for its European joint venture at 3.75%.
The five-year, senior unsecured bond will primarily be used to refinance an existing, non-green, €500m bond which expires next year.
SELP, SEGRO’s 50:50 jv with the Public Sector Pension Investment Board, was established in 2013 and owns €7.6bn of big box warehouses and development land across continental Europe.
The order book at peak totalled approximately €2.5bn and the bonds were priced at 245bps above euro mid-swaps, equating to an annual coupon of 3.75%.
The proceeds will be allocated to financing or refinancing eligible green projects, as outlined in the SEGRO Green Finance Framework, including its continued development programme, as well as providing funding for general corporate purposes.
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