ProLogis European Properties has raised €500m (£348m) through the issue of a new unsecured Euro bond.

The bond issue, managed by ABN AMRO and Bank of America, is the first to be undertaken by the industrial and logistics developer.

The bond is due in 2014 and guaranteed by ProLogis Europe, and has an interest rate of 5.88%.

ProLogis said it expected the bond to be rated A3 by Moody’s.

Reduce debt
It said that the proceeds from the issue will be used to reduce debt outstanding on its bridge and revolving credit facilities.

Peter Cassells, chief financial officer, said: ‘This issue provides an important source of finance and at two times oversubscribed marks a successful debut in the unsecured bond markets for us.

‘Our investment grade credit rating by Moody’s enables us to utilise a fuller range of credit instruments and we have taken the opportunity to raise long term unsecured finance at what we believe is an attractive rate in a new debt market for PEPR, despite a difficult credit environment.’