1st Nov

St Modwen Retail Bond Issue Raises £80m

The offer period for Birmingham-based developer St Modwen's first retail bond closed on 31st October with £80m to be issued. St Modwen launched the seven-year retail bond, which will pay a fixed interest rate of 6.25 per cent a year, on 17th October and was looking to raise between £50m and £100m to reduce its reliance on bank debt.

Chief executive Bill Oliver said: "We are very pleased to announce the successful closure of our first retail bond. We believe that the positive response from investors demonstrates the strengths of St Modwen and its consistent income generation. "We are delighted to have successfully accessed a new source of finance and diversified our debt financing profile."

The bonds will pay out twice yearly in May and November, with the first coupon payment being made on 7 May 2013 and maturing on 7 November 2019.

Investec Bank and Numis Securities acted as joint lead managers on the bond issue.

St Modwen has a UK property portfolio which is valued at £1.1bn and made up of 5,800 acres.

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