Sirius Real Estate announced on Wednesday that it has placed its inaugural corporate bonds with a coupon of 1.125%.
The order book for the five-year bonds was significantly oversubscribed, reflecting what the company said it has been a 'strong endorsement by the capital markets' for the group's business model.
The company will use part of the proceeds to refinance certain existing secured debt facilities, with the remainder to be deployed towards the significant pipeline of potential acquisitions, as well as general corporate purposes.
Alistair Marks, chief financial officer of Sirius, commented: ‘The successful issue of our first corporate bonds, which was heavily oversubscribed, is proof of the attractiveness and sustainability of our business model. We were particularly pleased to be able to successfully place the bonds with important institutional investors and establish new capital and funding sources on very attractive terms. The market has given us the clear signal that our balanced financing strategy, comprising secured and unsecured financing, is well regarded. The process will help us to continue to execute our strategy of growth, taking advantage of the strong demand for our product.’
