European logistics real estate investor Tritax EuroBox has raised €500m in an oversubscribed green bond issue.

Tritax EuroBox said the capital raised, during its debut senior unsecured green bond issue, will “significantly reduce the company’s cost of debt and represents the first step in the company diversifying its funding sources into the debt capital markets”.

This will include standing assets as well as contributing to the funding of the company’s extensive pipeline of new developments and acquisitions, the company said.

Mehdi Bourassi, finance director for Tritax EuroBox, said: “Earlier this year we were awarded a BBB- rating by Fitch reflecting the company’s high-quality portfolio of big-box real-estate assets and their long-term, inflation-indexed leases.

“We are delighted to have achieved this next step in the company’s evolution. Across our portfolio, we see significant opportunities to reduce environmental impact, benefitting all our stakeholders.

“In addition to supporting these objectives, the green bond represents attractively priced financing, diversifying our funding sources, significantly reducing our cost of debt and further strengthening our balance sheet.”

Helen Drury, sustainability lead for Tritax Group, said: “We are making significant progress in enhancing the sustainability of our portfolio for the benefit of all our stakeholders.

“We have the opportunity to make a significant and positive contribution to improving the environmental impact of the logistics real estate and construction sectors. Initiatives that deliver best in class sustainable developments, reduce carbon emissions and support energy efficiency will be supported by the proceeds from our first green bond.”

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