(Alliance News) - Sirius Real Estate Ltd on Wednesday said it has successfully placed its inaugural corporate bonds to raise EUR350 million.
The EUR350 million senior bond has a five-year term with maturity in 2026 and a coupon of 1.125%, the London-based operator of German business parks said.
"The order book for the bonds was significantly oversubscribed, reflecting the strong endorsement by the capital markets for the company and its business model," the company said.
The company will use part of the proceeds to refinance existing secured debt facilities, with the remainder going towards the "significant pipeline of potential acquisitions", as well as general corporate purposes.
The bond is expected to be rated BBB by Fitch Ratings, Sirius noted.
Chief Executive Alistair Marks said: "The successful issue of our first corporate bonds, which was heavily oversubscribed, is proof of the attractiveness and sustainability of our business model. We were particularly pleased to be able to successfully place the bonds with important institutional investors and establish new capital and funding sources on very attractive terms.
"The market has given us the clear signal that our balanced financing strategy, comprising secured and unsecured financing, is well regarded. The process will help us to continue to execute our strategy of growth, taking advantage of the strong demand for our product."
Sirius shares were down 0.6% at 104.00 pence each in London, and closed at ZAR20.22 each in Johannesburg on Tuesday. Johannesburg markets are closed Wednesday for Youth Day.
By Greg Roxburgh; gregroxburgh@alliancenews.com
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Sirius Real Estate (SRE)