Hammerson has issued a €500m fixed-rate public bond with the lowest ever coupon by a UK property company, at 2%.
Priced at 90 basis points over the mid swap rate, the eight-year bond was more than five times oversubscribed.
Hammersmith’s chief financial officer, Timon Drakesmith, said: “Market conditions for new debt offerings are favourable at present and we are appreciative of the strong support from our investors for this transaction.”
The new finance replaces slightly more expensive existing debt and extends the duration of Hammerson’s liabilities.
The retail REIT has a large retail portfolio in France. Its nine French shopping centres were valued at £1.7bn at the end of last year.
Deutsche Bank, The Royal Bank of Scotland, BNP Paribas, Lloyds Bank, Mitsubishi UFJ Securities and Santander GBM acted as joint bookrunners for the issue.