Landsec launches £400m green bond

Landsec has launched its first green bond, priced at £400m. The developer’s wholly-owned subsidiary, Land Securities Capital Markets, launched the £400m bond with a maturity of 9.5 years and a coupon of 4.875%. The green bond follows the publication of Landsec’s updated Green Financing Framework. CFO Vanessa Simms said the new bond “illustrated Landsec’s continuing green leadership credentials in the real estate sector”. “The transaction clearly demonstrates Landsec’s ability to access competitively priced capital in more challenging market conditions and, as a result, Landsec remains well placed to perform as the economy transitions to a higher interest rate environment.” Landsec’s cash and undrawn committed facilities will increase to £2.5bn following the launch. The weighted average cost of debt will increase by 20bps to 2.9%, compared with 2.7% at 30 September 2022, but the proportion of group borrowings which is fixed or hedged increases to 98%. The weighted average maturity of debt increases by 0.7 years, from 9.8 years at 30 September. To send feedback, e-mail piers.wehner@eg.co.uk or tweet @PiersWehner or @EGPropertyNews Image by Shutterstock