Hammerson sees strong demand for new bond issuance

3rd Oct 2024 08:43

(Sharecast News) - Retail-focused property group Hammerson has announced the oversubscribed launch of a new 12-year £400m bond, which will be used to support growth and refinance outstanding debt.

The company hailed the bond issuance as a success, claiming that its peak the order book was in excess of £2.6bn.

The bond, which will be issued on 8 October and is subject to final legal documentation and customary closing conditions, came with a coupon of 5.875%.

The proceeds will be used in part to refinance Hammerson's outstanding £300m 6% bonds due 2026, £300m 7.25% bonds due 2028, and £350m 3.5% bonds due 2025.

"We are delighted with the strong demand for our 12-year £400m bond which was 7x oversubscribed at the peak," said Hammerson's chief financial officer Himanshu Raja.

"Investors recognise that this is an exciting new era for Hammerson, focused on accelerating growth whilst maintaining our operational grip and financial discipline."