First Sterling Green Bond Issuance by a UK REIT
Tritax Big Box REIT plc has today priced £250 million of unsecured green bonds maturing on 27 November 2033 (the 2033 Notes) under the Company’s £1.5 billion Euro Medium Term Note Programme (the EMTN Programme).
This follows a series of fixed income investor meetings which generated substantial institutional demand.
Further strengthening the balance sheet
The 2033 Notes will have a tenor of 13 years and an interest rate of 1.5%. The issue will reduce the Company's consolidated pro-forma capped cost of debt to 2.5% and the pro-forma average duration of debt will increase from 6.7 years to 7.5 years.
The 2033 Notes are rated Baa1 by Moody’s Investors Service Limited and are expected to (i) be issued on 27 November 2020 upon the satisfaction or waiver of customary conditions precedent; and (ii) be admitted to the Irish Stock Exchange’s Official List and to trading on the Global Exchange Market of the Irish Stock Exchange upon issue.
Aligned with the Company’s sustainability strategy and vision
The proceeds from the 2033 Notes are intended to be used to finance or refinance new or existing green projects that satisfy the criteria set out in our newly established Green Finance Framework (the Framework), as announced on 17 November 2020. The Framework is available on the Company’s website.
The 2033 Notes, which we believe will be the first Sterling green bond issuance by a UK REIT, will contribute towards the funding of the Company’s extensive pipeline of new developments that are expected to be built as best-in-class, sustainable, net zero carbon buildings and to be BREEAM certified as either “Very Good” or “Excellent.”
The Company’s vision for sustainability is to demonstrate leadership in sustainable logistics, working in collaboration with stakeholders to create positive change and value in the long term. Using the proceeds of the 2033 Notes for the aforementioned green projects demonstrates the Company’s comprehensive commitment to this vision and is in line with the Company’s 2030 Sustainability Strategy.
In recognition of its progress on sustainability to date, the Company has been recently awarded:
- A 3 Star score from the GRESB (Global Real Estate Sustainability Benchmark);
- BB ESG rating from MSCI; and
- EPRA Sustainability Best Practices Recommendations Most Improved and Bronze awards in 2019.
The Company is also a Gold Leaf Member of UK Green Building Council.
Frankie Whitehead, Finance Director for Tritax Big Box REIT plc, commented: “Earlier this year we launched our bold and ambitious vision and strategy for sustainability with a view to demonstrating leadership in sustainable logistics. As part of this leadership, we are launching the first Sterling green bond by a UK REIT, the proceeds of which will support the development of the next generation of “green” logistics buildings. Across our portfolio, we see significant opportunities to reduce environmental impact, benefitting all of our stakeholders. In addition to supporting these objectives, the Green Bond represents attractively priced, long-dated financing, further strengthening our balance sheet.”
Helen Drury, Sustainability Lead for Tritax Big Box REIT plc, commented:
“We are making significant progess in enhancing the sustainability of our portfolio for the benefit of all our stakeholders. With the UK’s largest logistics focused land bank, we have the opportunity to make a significant and positive contribution to improving the environmental impact of the logistics real estate and construction sectors, a key part of the UK economy. Initiatives that deliver best in class sustainable developments, reduce carbon emissions and support energy efficiency will be supported by the proceeds from our first green bond.”
Barclays Bank PLC and BNP Paribas (acting as Joint Global Coordinators and Structuring Advisors) and Wells Fargo Securities International Limited (acting as Active Bookrunner) were mandated in connection with the 2033 Notes.
The Company was advised on the financing transaction by Lazard & Co., Limited.
The Company's LEI is: 213800L6X88MIYPVR714