British Land raises £350m via bond issue
BRITISH Land, one of the UK’s biggest developers, has launched a £350m convertible bond.
The senior, unsecured convertible bond, due in 2020, will be used to fund the company’s acquisition of two central London properties and future spending.
British Land splashed £210m on increasing its ownership of One Sheldon Square in Paddington in April, and also bought the Surrey Quays Leisure Park near Canary Wharf for £135m in March.
“More generally, the company believes that the offering contributes to the company’s existing strong financial position, while also taking advantage of the current favourable market conditions to diversify its medium-term sources of finance and keep its cost of debt low,” British Land said.
The initial conversion price is expected to be set at a premium of between 20 and 27.5 per cent above the volume-weighted average price of British Land shares between the launch and pricing.