Hammerson has issued a £350m, 10-year bond priced at 173bps over the reference gilt with an annual coupon of 3.5%.
The bond was two-times oversubscribed.
The retail REIT swapped the sterling bond nominal amount and coupon payments into euros, which resulted in a net coupon cost to Hammerson of 2.5%.
The 10-year term of the bond extends the weighted average maturity of the company’s debt by approximately one year.
“This transaction is the first sterling bond issue by Hammerson for almost ten years and represents a welcome return to a home funding market,” said Timon Drakesmith, chief financial officer of Hammerson.
“We are appreciative of the support shown by our key bond investors and our relationship banks have assisted in swapping the coupon to a low 2.5% level in euros.”
BNP Paribas, HSBC, Lloyds Bank, Barclays, Mitsubishi UFJ and Santander Global Banking & Markets acted as joint bookrunners.
It closed its purchase of NAMA’s €1.85bn Project Jewel with a new short-term, €1bn revolving credit facility (RCF) from its existing lenders this week and said it plans to refinance the loan from asset disposals and capital markets issuance.
Priced at 9bps over the mid swap rate, the eight-year bond was more than five times oversubscribed.