SEGRO Prices EUR 500 Million of 8 Year Bonds

SEGRO plc ('SEGRO') has announced the pricing of a €500 million senior unsecured bond issue. The bond, which has an eight-year term, is priced at 123 basis points above euro mid-swaps and carries an annual coupon of 3.5%.

Investor demand for the issuance was strong, being oversubscribed over six times at its peak. The funds raised will primarily be used to refinance existing debt, focusing on bank loans maturing in early 2026.

As a result, SEGRO’s average cost of debt, including joint venture debt at share, will decrease to 2.6% from 2.7% as of June 30, 2024. The average duration of the company's debt will increase to 7.3 years from 6.8 years.

Soumen Das, SEGRO’s Chief Financial Officer, remarked that the bond issue enhances the company’s balance sheet, reducing the average cost of debt and extending the average maturity.