Spanish REIT Merlin Properties has become the first Spanish real estate company to ever issue a bond with a maturity longer than 10 years in a move reflecting the strong demand of today's debt markets.

Merlin is tapping investors for €300 mln offering an annual coupon of 2.375% over a 12-year period.

The Spanish investor said it plans to use the proceeds to repay secured loans early as well as for general corporate needs.

The bond will be issued on 18 September at a price of 98.7% of the nominal value. It will allow the company to reduce its total cost of debt as well as to extend the total maturity of its debt load.

Merlin is Spain's biggest listed commercial real estate landlord with a market cap of around €5.3 bn.