The Segro European Logistics Partnership (SELP) has announced the launch and pricing of a seven-year, €500 mln unsecured bond issue.
The bonds have been priced at 120 basis points above the euro mid swap rate and have an annual coupon of 1.25%.
'We are very pleased by the depth and breadth of support for this inaugural SELP bond issue which is testament to the high-quality assets and cash flows of the joint venture. The issue allows SELP to finance itself both at a lower cost and more efficiently,' commented Justin Read, group finance director of UK REIT Segro.
Segro said that the proceeds of the issue would principally be used to prepay the majority of SELP's secured bank facilities.
SELP has also agreed a €200 mln revolving credit facility with BNP Paribas and The Royal Bank of Scotland.
According to Segro, the combined impact of the refinancing exercise should reduce SELP's third party financing costs by approximately 110 basis points from the current 2.7%.
SELP is a European logistics joint venture between Segro and Canada's Public Sector Pension Investment Board (PSP Investments).
