Shares in Sirius Real Estate Limited (LSE:SRE, JSE:SRE, OTC:SRRLF) climbed 2% after the company announced robust investor support for its €350 million bond issuance.
Chief financial officer Chris Bowman described the oversubscribed bond, issued at a 4% coupon and maturing in 2032, as a strong endorsement of the group’s growth strategy and income-generating potential.
The proceeds will refinance existing debt, including part of a €400 million bond due in 2026, and support acquisitions in Germany and the UK. The issuance extends Sirius’ average debt maturity to 4.2 years and marginally increases its average debt cost to 2.6%.
The shares were up 1.7p at 78.2p.
Peel Hunt says 'buy' up to 110p, pointing out the stock trades on a 20% discount to net asset value and offers a 6.8% dividend yield, making it both a value and income play.