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Highlights:
- Hammerson successfully launched a £400 million, 12-year bond, oversubscribed by seven times, to support growth and refinance existing debt.
- Proceeds will refinance bonds due in 2025, 2026, and 2028, strengthening the company's financial position.
- CFO Himanshu Raja highlighted investor confidence in Hammerson’s growth-focused strategy.
Retail property giant Hammerson (LSE:HMSO) has announced the successful launch of a new £400 million, 12-year bond, which was heavily oversubscribed, with orders peaking at over £2.6 billion. The bond issuance, set to be finalized on 8 October, carries a coupon of 5.875% and will be used to support the company’s growth strategy while refinancing a portion of its outstanding debt. The launch was hailed as a major success, reflecting strong investor confidence in Hammerson's future direction.
The company plans to use the proceeds to refinance several existing bonds, specifically its £300 million 6% bonds due in 2026, £300 million 7.25% bonds due in 2028, and £350 million 3.5% bonds due in 2025. The refinancing effort is part of Hammerson's ongoing strategy to streamline its financial structure, reducing future liabilities and positioning the company for sustained growth in its core retail property operations.
Himanshu Raja, chief financial officer of Hammerson, expressed his satisfaction with the overwhelming investor interest, noting that the bond was oversubscribed by more than seven times. He highlighted this as a testament to the market's confidence in the company’s ability to drive growth while maintaining financial discipline.
"We are delighted with the strong demand for our 12-year £400 million bond, which was 7x oversubscribed at its peak," Raja said. "This demonstrates the confidence investors have in Hammerson’s strategy as we focus on accelerating growth, maintaining our operational grip, and continuing our financial discipline."
The bond issuance marks a pivotal step for Hammerson as it seeks to strengthen its financial position. With proceeds allocated towards refinancing higher-cost debt, the company is positioning itself to reduce its overall interest expenses while enhancing its ability to invest in key growth areas. The strategic move also comes as Hammerson continues its focus on revitalizing its retail property portfolio and adapting to evolving market trends, particularly in the face of ongoing challenges in the commercial property sector.
Hammerson, which owns and manages prominent retail destinations across the UK and Europe, sees the bond issuance as a key part of its broader efforts to maintain stability and support long-term growth in its retail assets.
