Land Securities today announced it would issue £500m of bonds to help reduce company debt. The issue is the second part of the £6bn Multicurrency Note Programme the company revealed in September last year.
The bond will pay 5.125% interest semi-annually and has an expected maturity of 7 February 2034 and a final maturity of 7 February 2036. Fitch Ratings and Standard & Poor’s have given the bonds an AA rating. Proceeds will be used to repay existing bank borrowings currently drawn under LandSecs’ secured bank facility.
Today’s issue comes four months after the first issue of £300m bond notes with a lower interest payment of 4.875% and a shorter maturity of September 2023.
Citigroup, JPMorgan Cazenove and Royal Bank of Scotlandare acting as joint lead Managers for the issue of the bonds. Barclays Capital, BNP Paribas, Commerzbank, HSBC and Lloyds TSB are acting as co-Manager.