REIT Sources Ten Year Money At 1.9%

21 May 2021 | 09.11 am

REIT Sources Ten Year Money At 1.9%

€125m US private placement debt issue

21 May 2021 | 09.11 am

Hibernia REIT is to raise €125m via an unsecured US private placement, at an average fixed rate of 1.9% over ten years.

The money will help fund the development of new offices for the investment trust in Dublin.

The note issue comprises equal amounts of 10 and 12 year notes with an average fixed coupon of 1.9%, and have been placed with five institutional investors, all new lenders to Hibernia.  

Chief financial officer Tom Edwards-Moss (pictured) commetned: “We are very pleased to have agreed this new debt issue, which increases our financial capacity and will help fund the development of our new office clusters at Clanwilliam Court and Harcourt Square. 

“We are also delighted to welcome five new investors as long-term lenders. The new notes have a fixed coupon below the average cost of our existing borrowings and significantly extend the weighted average maturity of our debt.”

The company’s weighted average debt maturity is 3.4 years, while cash and undrawn facilities, net of commitments, amounted to €110m at the end of March.  Pro forma for the new notes, the weighted average debt maturity at the same date is extended to 5.2 years and cash and undrawn facilities, net of commitments, increases to €235m. 

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