Hammerson has announced the launch of a €700m (£600m) real estate sustainability-linked bond, with a six year maturity period and a 1.75% coupon.
This new issuance was added with tender offers announced on 20 May 2021 in respect of the €500m (£430m) 2% bonds due 2022 and the €500m (£430m) 1.75% bonds due 2023.
Proceeds from the new issuance will be used to repay existing financial indebtedness and the combined transactions are set to have a largely neutral impact on Hammerson’s net debt.
In April 2021, Hammerson announced its exit from the retail park sector after exchanging contracts with Brookfield to sell a portfolio of seven retail parks for £330m.
Himanshu Raja, the chief financial officer at Hammerson, said: “Together with our recent announcement of the disposal of the retail parks portfolio, this is another important step in strengthening the Group’s capital structure.
“The linking of the bond to our sustainability targets brings a stronger alignment between our financial and sustainability goals and we are pleased to have received a positive response to our bond, which was 2x covered.”