Retail bond success for St Modwen
REGENERATION specialist St Modwen Properties has successfully raised £80m following the launch of its first retail bond.
The firm mounted the fundraising initiative in an attempt to generate finance and cut debt.
The bond had been targeted at private investors rather than large institutions and the company said it was delighted with the response.
The FTSE-250 business is thought to have been targeting a response of between £50m to £100m.
In a statement to the London Stock Exchange, St. Modwen said the aggregate nominal amount of the Bonds to be issued would be £80m.
Bill Oliver, chief executive of St. Modwen, 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 company is active in Yorkshire where it is working on a number of projects in Doncaster and Sheffield.
It is also working on a design and build construction project for a new office development in Lincoln for Siemens.
