Segro prices €500m bond issue

Segro said it had priced €500m of senior unsecured bond issue for an eight-year term at 123 basis points above euro mid-swaps with an annual coupon of 3.5%.

The proceeds will mainly be used to refinance existing debt, 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% from 2.7% at 30 June 2024 and the average duration increases to 7.3 years from 6.8 years at 30 June, Segro said on Wednesday.

The issuance was more than six times subscribed at peak.

Reporting by Frank Prenesti for Sharecast.com