REG - Derwent London PLC - £250m 7-year 5.25% bond issuance

Derwent LondonAnnouncement

23/05/2025 16:15

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RNS Number : 0452K  Derwent London PLC  23 May 2025

 Derwent London plc ("Derwent London" / "the Group")

 £250m 7-year 5.25% bond issuance

 

Derwent London is pleased to announce the pricing of a sterling denominated
senior unsecured bond (the "Bonds") for an aggregate principal amount of
£250m and a term of 7 years.  The Bonds will be quoted on the Official List
of the UK Listing Authority and admitted to trading on the Main Market of the
London Stock Exchange. They will bear interest at a rate of 5.25%, reflecting
a credit spread of 105bp, and are expected to be rated A- by Fitch Ratings
Ltd.

The net proceeds of the Bonds will initially be used to repay amounts drawn
under the Group's revolving credit facilities and to refinance near-term debt
maturities. Proceeds will also be deployed into our extensive development
pipeline. Our next major project at Holden House W1 is expected to commence
later this year, with forecast capital expenditure of £150m.

Damian Wisniewski, Chief Financial Officer of Derwent London, said:

"We are delighted by the strong support for our bond which has seen Derwent
London obtain £250m of 7-year unsecured debt at an attractive credit spread.
This transaction will extend our weighted average debt maturity on a proforma
basis to approximately 5 years."

Barclays, HSBC and NatWest Markets acted as Joint Active Bookrunners and Wells
Fargo Securities as Passive Bookrunner. Rothschild & Co advised on the
transaction.

 

For further information, please contact:

 Derwent London                             Damian Wisniewski, Chief Financial Officer

 Tel: +44 (0)20 3478 4217 (Robert Duncan)   Jay Joshi, Group Financial Controller

                                            Robert Duncan, Head of Investor Relations
 Brunswick Group                            Nina Coad

 Tel: +44 (0)20 7404 5959                   Emily Brentnall

 

Notes to editors

Derwent London plc

Derwent London plc owns a commercial real estate portfolio predominantly in
central London valued at £5.0 billion as at 31 December 2024, making it the
largest London office-focused real estate investment trust (REIT).

Our experienced team has a long track record of creating value throughout the
property cycle by regenerating our buildings via redevelopment or
refurbishment, effective asset management and capital recycling. We typically
acquire central London properties off-market with low capital values and
modest rents in improving locations, most of which are either in the West End
or City Borders. We capitalise on the unique qualities of each of our
properties - taking a fresh approach to the regeneration of every building
with a focus on anticipating tenant requirements and an emphasis on design.
Reflecting and supporting our long-term success, the business has a strong
balance sheet with modest leverage, a robust income stream and flexible
financing.

We are frequently recognised in industry awards for the quality, design and
innovation of our projects. Landmark buildings in our 5.4 million sq ft
portfolio include 1 Soho Place W1, 80 Charlotte Street W1, Brunel Building W2,
White Collar Factory EC1, Angel Building EC1, 1-2 Stephen Street W1 and Tea
Building E1.

As part of our commitment to lead the industry in mitigating climate change,
Derwent London has committed to becoming a net zero carbon business by 2030,
publishing its pathway to achieving this goal in July 2020. Our science-based
carbon targets validated by the Science Based Targets initiative (SBTi). In
2013 the Company launched a voluntary Community Fund which has to date
supported 180 community projects in central London.

The Company is a public limited company, which is listed on the London Stock
Exchange and incorporated and domiciled in the UK. The address of its
registered office is 25 Savile Row, London, W1S 2ER.

For further information see www.derwentlondon.com
(http://www.derwentlondon.com) or follow us on LinkedIn
(https://www.linkedin.com/company/derwentlondon/?viewAsMember=true)

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