REG - Land Sec. Group PLC - Landsec announces New Green Bond

Land SecuritiesAnnouncement

09/03/2023 07:00

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RNS Number : 3663S  Land Securities Group PLC  09 March 2023

9 March 2023

Land Securities Group PLC

("Landsec")

 

Landsec announces New Green Bond

 

Following the publication of Landsec's updated Green Financing Framework, its
wholly-owned subsidiary, Land Securities Capital Markets PLC, announces the
launch and pricing of its inaugural £400m Green Bond with a maturity of 9.5
years, paying a coupon of 4.875%, subject to final legal documentation.

The transaction further enhances Landsec's financial capacity and flexibility,
building on an already strong position. Coupled with a pipeline of central
London and mixed use development opportunities that offer excellent
optionality, the transaction leaves Landsec extremely well placed to continue
delivering against its strategy in the years ahead.

The impact on Landsec's principal financing metrics is as follows:

·      Cash and undrawn committed facilities increases to £2.5bn(1)

·      Weighted average cost of debt increases by 20bps, compared to
2.7% as at 30 September 2022.

·      The proportion of Group borrowings which is fixed or hedged
increases to 98%.

·      Weighted average maturity of debt increases by 0.7 years,
compared to 9.8 years at 30 September.

Vanessa Simms, Chief Financial Officer at Landsec said: "I am delighted to be
issuing our first Green Bond, illustrating 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."

1.     Based upon Landsec's reported debt position and valuation at 30
September 2022, the pro forma impact of the new issuance with adjustments for
the sale of One New Street Square, EC4, for £349.5m on 27 January 2023 and
the subsequent reduction in debt drawn under the Group's revolving credit
facilities.

Ends

 

Please contact

Press
Investors
Sara
Doggett
Edward Thacker

+44 (0)7834 431258
+44 (0)7887 825869
sara.doggett@landsec.com (mailto:sara.doggett@landsec.com)
                   edward.thacker@landsec.com
(mailto:edward.thacker@landsec.com)

 

Notes to editors

Landsec has a sector leading position in ESG, and sustainable investment is at
the heart of its business model. Its Build Well; Live Well; Act Well strategy
ensures that there is a focus not just on the impact of its buildings but also
ensuring that its actions improve quality of life for its people, customers
and communities. The proceeds of the issuance will be used to fund eligible
green projects, as outlined in Landsec's Green Financing Framework published
in March 2023. This updated framework aligns with the Green Bond Principles
2021 and the Green Loan principles 2021 administered by ICMA and LMA
respectively.

 

 

 

 

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