Hammerson Prices £250 Million Bond Amid High Demand

Hammerson priced £250 million of seven-year bonds with an annual coupon of 5.875%, scheduled for issuance on 8 September. The offering saw significant investor demand, with a peak order book exceeding £1.1 billion, more than four times the available amount.

To manage costs, the company used interest rate swaps to convert the fixed coupon to a SONIA floating rate of +131 basis points, resulting in a net initial rate of 5.04%. This strategy reduces the proportion of the company's gross debt with fixed interest rates from 95% to 84%.

The financing strengthens cash holdings ahead of a £599.8 million sustainability-linked bond maturity due in June 2027. This move follows the company's £218 million acquisition of a 50% stake in the Arndale shopping centre in Manchester, its first major external acquisition in over a decade. Hammerson maintained its 2026 financial year earnings guidance at approximately £132 million.