UK logistics REIT Tritax Big Box has launched its debut green bond, believed to be the first sterling green bond issuance by a UK REIT.
Tritax priced £250 mln (€281 mln) of unsecured green bonds maturing on 27 November 2033 under the company’s £1.5 bn euro medium term note programme (EMTN programme). They will be issued on 27 November, with trading slated for the global exchange market of the Irish Stock Exchange.
The issuance followed a series of fixed income investor meetings which generated substantial institutional demand.
The notes will contribute towards the funding of the company’s pipeline of new developments that are expected to be built as sustainable, net zero carbon buildings and to be Breeam certified as either 'Very Good' or 'Excellent'.
Frankie Whitehead, finance director for Tritax, said: 'Across our portfolio, we see significant opportunities to reduce environmental impact, benefitting all of our stakeholders.
'In addition to supporting these objectives, the green bond represents attractively priced, long-dated financing, further strengthening our balance sheet.'
According to Tritax, the 2033 notes will have an interest rate of 1.5%, with the issue expected to reduce the company's consolidated pro-forma capped cost of debt to 2.5%, with the pro-forma average duration of debt increasing from 6.7 years to 7.5 years. They are rated Baa1 by Moody’s Investors Service.
Barclays Bank and BNP Paribas (acting as joint global coordinators and structuring advisors) and Wells Fargo Securities International (acting as active bookrunner) were mandated in connection with the notes.
The company was advised on the financing transaction by Lazard & Co.
