SEGRO issues €1.15 billion in green bonds

SEGRO has secured €1.15 billion ($1.27 billion) from green bonds issued via its European medium-term note programme. 

The UK real estate investment trust has issued two tranches of notes: 

• €650 million with a four-year term, priced at 70 basis points above euro mid-swaps with an annual coupon of 1.250%
• €500 million with an eight-year term priced at 110bps above euro mid-swaps with an annual coupon of 1.875%.

The bond issuance was six times oversubscribed, the warehousing and industrial specialist said. Proceeds will be principally used to finance or refinance eligible projects under the REIT’s green finance framework, which was published last year.

Soumen Das, SEGRO’s chief financial officer, said: “We appreciate the strong support that we have received for the first bond under our new EMTN programme with the coupons in line with our low 1.5% average cost of debt. The proceeds of this issuance will enable us to continue to respond to our customers’ increased requirements for modern space built to the highest levels of sustainability standards.”