Sert issues 300 million euros in green notes due 2033 at 4.125% coupon rate
Net proceeds will be used to refinance existing borrowings due to mature in 2026 and 2027
[SINGAPORE] The managers of Stoneweg Europe Stapled Trust (Sert) on Wednesday (Oct 15) announced that it has issued its second green bond in 2025 under its 1.5 billion euro medium-term note programme.
The 300 million euro (S$452 million) bond will mature on Feb 22, 2033. It will have a coupon rate of 4.125 per cent, with a re-offer yield of 4.203 per cent, and maturity of 7.3 years.
The deal comes days after Fitch Ratings upgraded the stapled trust’s long-term issuer default rating to “BBB”, from “BBB-”. Sert has also extended its debt maturity to one of the longest among Singapore-Reits, easing near-term refinancing pressure and freeing capacity for future growth.
It also entered a five-year fixed-to-floating interest rate swap, bringing its overall interest rate to 3.9 per cent.
Demand from international institutional investors and banks for the notes had the order book peak at nearly one billion euros, marking about a 3.3 times oversubscription.
The net proceeds will be used to refinance existing borrowings due to mature in 2026 and 2027. This includes a 70.6 million euro unsecured facility already approved by the lead bank for extension beyond 2029.
The bond was priced at a margin of 175 basis points over the mid-swap rate, “materially lower” than the bank debt being replaced and is distribution-accretive by about one million euros per annum.
Simon Garing, chief executive officer of Sert’s managers, said: “Looking ahead, we will continue to enhance unitholder returns through disciplined capital management and the ongoing shift towards higher-yielding logistics and light-industrial and highly environment, social and governance-rated office assets in Western Europe.”
Stapled securities of Sert closed 0.7 per cent or 0.01 euro up at 1.5 euros on Tuesday.
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