Prologis European Properties (PEPR) has raised EUR 500 million though an unsecured bond issue by Prologis International Funding, a fully-owned subsidiary of PEPR, in the Euro bond market. The issue, due 2014 is PERP's first issue of unsecured notes.

Prologis European Properties (PEPR) has raised EUR 500 million though an unsecured bond issue by Prologis International Funding, a fully-owned subsidiary of PEPR, in the Euro bond market. The issue, due 2014 is PERP's first issue of unsecured notes.

The joint lead managers and bookrunners of the issue, guaranteed by PEPR, are ABN AMRO and Banc of America Securities. The notes are expected to be rated A3 by rating agency Moody's. Interest will be payable annually in arrear on 23 October each year at the coupon rate of 5.875 %, with the first such payment due on 23 October 2008. The notes will be redeemed at par on 23 October 2014, unless redeemed earlier in accordance with the terms. The notes were priced to yield a margin of 159.4 basis points over the DBR 4.250% July 2014.

PERP said applications have been made to the Commission de Surveillance du Secteur Financier, Luxembourg for the notes to be admitted to the official list of the Luxembourg Stock Exchange with a further application to the Luxembourg Stock Exchange for the notes to be admitted to trading. It is expected that official dealings in the notes will commence on the Luxembourg Stock Exchange on 23 October 2007. The net proceeds of the issue will be used to reduce debt outstanding under PEPR's bridge facility, due June 2008, and its revolving credit facility, due December 2007.