Hammerson PLC has priced a new €350 million bond with a five-year term, carrying an annual coupon of 3.875% and a spread of 110 basis points over euro mid-swaps. The transaction attracted demand in excess of five times the offered amount at its peak, company disclosures show.
The securities are scheduled to be issued on June 8, subject to the completion of final legal documentation and customary closing conditions. The company said the issuance constitutes the next stage in refinancing its €700 million of 1.75% sustainability-linked bonds, which mature in June 2027.
After including the new paper, Hammerson’s weighted average maturity for group debt is 4.7 years. The bonds will be issued under the group’s Euro Medium Term Note (EMTN) programme, which was established in 2024 and most recently updated on April 24.
Hammerson indicated that the new bonds are expected to be assigned an A- rating by Fitch Ratings Limited and a Baa2 rating by Moody’s Investors Services Limited. The group currently holds a BBB+ issuer default rating with a stable outlook, along with a Fitch senior unsecured debt rating of A- and a Moody’s Baa2 long-term debt rating.
Separately, in April the company refinanced a £463 million revolving credit facility with its existing lenders on unchanged terms. That facility is committed and undrawn, carries an initial maturity date of April 2029, and includes two one-year extension options.
The group also exercised extension options on two further committed revolving credit facilities totalling £150 million, extending their maturities by one year to April 2029. Following those actions, total committed and undrawn facilities available to the group amount to £613 million.
Hammerson reiterated its full-year 2026 EPRA earnings guidance of approximately £120 million.
Context and next steps
The priced bond forms part of a staged refinancing effort of the company’s outstanding sustainability-linked bonds that mature in mid-2027. The transaction remains conditional on completion steps including final legal documentation and normal closing mechanics, and rating assignments are described as expected rather than final.
Liquidity position
Following the refinancing of the £463 million facility and the extensions to the additional facilities, Hammerson reports that its committed and undrawn lines total £613 million, with initial maturities on the principal facilities set at April 2029 and extension options retained where applicable.
All figures and timings are as disclosed by the company.