Sirius Real Estate Limited's (LSE:SRE, JSE:SRE, OTC:SRRLF) chief financial officer, Chris Bowman, hailed the strong investor backing for the company’s €350 million bond issuance, describing it as a clear vote of confidence in the property group's growth strategy and its ability to deliver robust income returns.
He highlighted that the funding, secured at a 4% coupon and maturing in 2032, provides essential long-term liquidity while keeping the group’s net loan-to-value ratio comfortably within its 40% guidance.
The bond, expected to be rated BBB by Fitch, was oversubscribed around five times, reflecting significant institutional support.
The proceeds will primarily be used to refinance existing debt, including part of the €400 million bond maturing in June 2026, as well as to support acquisitions in Germany and the UK and general corporate purposes.
The issuance extends Sirius’ weighted average debt maturity to 4.2 years from 3.5 years and increases the average cost of debt to 2.6%, up from 2.1% as of September 2024. The bond will be governed by German law and listed on the Euro MTF Market of the Luxembourg Stock Exchange.
Deutsche Bank, HSBC, and Morgan Stanley acted as joint bookrunners for the transaction, with Lazard serving as financial adviser.
CFO Bowman said: "We appreciate the strong support that we have received from institutional investors for this €350 million bond issue which provides valuable, long-duration liquidity to enable us to continue executing our value-add growth plan.
"We remain well within our net LTV guidance of 40% or below. The strength of Sirius' investment case and capital markets access demonstrates investor confidence in our ability to generate strong income returns and our longer-term growth strategy."