Business
Issuance of second Corporate Bond raising EUR 300m
Issuance of second Corporate Bond raising EUR 300m.
About this update from Sirius Real Estate Limited
[{"type":"text","content":"\n \n \n \n RNS Number : 8566S\n Sirius Real Estate Limited\n 18 November 2021\n \n \n \n \n SIRIUS REAL ESTATE LIMITED\n (Incorporated in Guernsey)\n Company Number: 46442\n JSE Share Code: SRE\n \n LSE (GBP) Share Code: SRE\n \n \n LEI: 213800NURUF5W8QSK566\n \n ISIN Code: ISIN GG00B1W3VF54\n 18 November 2021\n \n NOT FOR PUBLICATION OR DISTRIBUTION, DIRECTLY OR INDIRECTLY, IN OR INTO THE UNITED STATES OF AMERICA, CANADA, AUSTRALIA OR JAPAN OR IN ANY OTHER JURISDICTION IN WHICH SUCH PUBLICATION OR DISTRIBUTION WOULD BE UNLAWFUL\n \n Sirius Real Estate Limited\n (\"Sirius\" or the \"Company\")\n Sirius Real Estate issues second Corporate Bond raising EUR 300 million\n Sirius Real Estate, a leading operator of branded business and industrial parks providing conventional space and flexible workspace in Germany and the UK, is pleased to announce that it has raised €300 million in a second senior unsecured corporate bond issuance (the \"Bond\"), following the Company's €400 million inaugural bond issuance in June.\n The Bond, which matures at the end of 2028, carries a coupon of 1.75% and is expected to be rated BBB by Fitch. The higher coupon over the June issuance reflects the longer maturity date. Following on from last week's successful equity raise, the €300 million bond issuance attracted a solid oversubscription, underlining the support from both equity and debt investors for the Company and its business model. The new facility will increase Sirius' weighted average debt expiry to 4.7 years from 3.7 years at 30 September 2021 with the Company's total average cost of debt rising accordingly slightly to 1.36% (1.2% at 30 September 2021).\n Sirius will use part of the proceeds to partially finance the Company's recent expansion into the UK market through its acquisition of the BizSpace Group, which it purchased based on an enterprise value of £380 million. This will include repaying the existing secured debt facilities within BizSpace as well as replenishing the Company's cash resources to be used to execute further acquisitions from the Company's significant pipeline of potential opportunities.\n The bonds are governed by German law and will be listed on the Euro MTF Market of the Luxembourg Stock Exchange.\n Deutsche Bank, HSBC and Morgan Stanley acted as joint bookrunners on the transaction.\n \n Alist...