SEGRO sees high demand for its Green Bonds

A green bond is a fixed-income instrument earmarked to raise money for climate and environmental projects. 

The unsecured Green Bond issue is split into two tranches: €650 million with a four-year term, priced at 70 basis points above euro mid-swaps with an annual coupon of 1.250%; and €500 million with an eight-year term priced at 110 basis points above euro mid-swaps with an annual coupon of 1.875%.

The proceeds of the issue will principally be used to finance and/or refinance Eligible Green Projects as outlined in the SEGRO Green Finance Framework, including the continued development programme, as well as providing funding for general corporate purposes.

SEGRO chief financial officer Soumen Das, 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 fundamental trends underpinning the occupier market remain strong, creating attractive and profitable investment opportunities for our business. 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.”

Eligible projects to be financed or refinanced under the framework could include the development of green buildings, clean transportation projects promoting the use of low carbon transport by installing electric vehicle charging points and cycling facilities, renewable energy and energy efficiency projects, and initiatives aiming to prevent and control pollution and help improve terrestrial biodiversity.