Commercial: National SEGRO prices £420m of 8-year bonds September 18th, 2024 Deividas Krupstas SEGRO has announced the pricing of a £420m senior unsecured bond issue for an eight-year term priced at 123 basis points above euro mid-swaps with an annual coupon of 3.5 per cent.The bond issuance was over six times subscribed at peak.The proceeds of the issue will principally be used to refinance existing indebtedness, with a focus on bank loans maturing in early 2026. As a result, the average cost of debt (including joint venture debt at share) falls to 2.6 per cent (from 2.7 per cent at 30 June 2024) and the average duration increases to 7.3 years (from 6.8 years at 30 June 2024).Soumen Das, SEGRO Chief Financial Officer, commented:“We appreciate the strong support that we have received from investors for the new bond issue in achieving an attractive spread and all-in coupon. The bond enhances our balance sheet, reducing our average cost of debt and extending the average maturity.”
