UK real estate investment trust Segro has raised €1.15bn via a green bond issue to finance projects.

The green bond issue is Segro’s debut issuance from its recently announced European Medium-Term Note (EMTN) programme. The bond issuance was six times oversubscribed, Segro said. 

Segro said the proceeds of the issue will mainly be used to finance and/or refinance eligible green projects as well as providing funding for general corporate purposes.

Segro owns warehouses and industrial property located in and around major cities and at key transportation hubs in the UK and in seven other European countries.

Soumen Das, Segor CFO, 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.”

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