British Land to issue EUR 400m bond

UK REIT British Land has announced plans to raise £300 mln (EUR 400 mln) through the launch of senior, unsecured convertible bonds due in 2017.

The bonds are expected to carry a coupon of between 1.375% and 1.875% per annum, payable semi-annually in arrear. The offering, which includes an option to increase the size by an additional £100 mln, will be used to fund the recently announced acquisition of the Clarges Estate, repay existing borrowings relating to recent acquisitions and to support development spending, the company said.

'The offering contributes to the company's existing strong financial position while also taking advantage of the current favourable market conditions to diversify its medium-term sources of finance,' British Land said in a statement on Tuesday.

The bonds are expected to be issued by British Land (Jersey) Limited, a wholly-owned subsidiary incorporated in Jersey, and will be guaranteed by the parent company.

UBS is acting as sole global coordinator and UBS, Morgan Stanley & Co. International and The Royal Bank of Scotland are acting as joint bookrunners. UBS and Morgan Stanley are acting as corporate brokers and advisors to the company.