Kennedy Wilson Europe Real Estate is to issue a further £200 mln (€235 mln) in senior unsecured bonds following the £300 mln (353 mln) 3.95% bond issue on 30 June 2015.
The initial bonds and new bonds are being consolidated and will mature on 30 June 2022. The new bonds are being issued at a yield of 3.572%.
KWE said the bonds are rated BBB (outlook stable) by Standard & Poor’s. The company said that part of net proceeds from the new bonds will go towards repaying secured debts. KWE invests in property across the UK, Ireland, Spain and Italy.
President and CEO Mary Ricks said: 'Today’s £200 mln bond issue is a further positive step in our continued progress towards moving to a more flexible debt structure with a greater proportion of unsecured finance, and we are very pleased with the result. 90% of our total debt is now fixed rate or hedged and our overall debt term to maturity extends to 6.1 years, whilst maintaining an attractive cost of debt at 2.97%.'
The issue and settlement date for the new bonds is expected to be 19 September, which should coincide with their listing on the official list of the London Stock Exchange and admission to trading on its regulated market.
BofA Merrill Lynch, Deutsche Bank and JP Morgan Cazenove acted as joint bookrunners.