Segro launches £300m bonds

Industrial landlord Segro, owner of Heywood Distribution Park and large swaths of Trafford Park, hopes to raise £300m through a bond issue.

David Sleath, group finance director, said there was strong interest in what he called the first unsecured sterling bond market issue by a UK real estate company since 2006.

The 12-year bond will pay interest at the rate of 6.75% half yearly and will mature on 23 November 2021.

Segro said the cash raised will be used for 'general corporate purposes'.

Sleath added: "This transaction further strengthens the group's financial position following a number of other financing initiatives undertaken earlier this year."

The bonds yield a margin of 300 basis points over the 4.75% UK Treasury Stock due 2020. The company expects the debt to be rated A- by Fitch.

The joint bookrunners and joint lead managers to the issue are Barclays Capital and HSBC. Commerzbank and Lloyds TSB have been appointed as co-lead managers.

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