Unite Group launches £275m unsecured bond

The Unite Group PLC – the company behind student housing developer Unite Students – has announced the pricing and launch of a £275m sterling-dominated senior unsecured bond.

The bond is for a term of 10 years and will bear interest at a rate of 3.5% pa.

S&P and Moody’s are expected to assign the bond an investment grade rating of BBB and Baa2 respectively. 

The bond will form part of Unite’s overall financing strategy to further diversify its sources of funding, extend its debt maturity profile and move more of its funding to an unsecured basis.

The proceeds of the bond will be used for general corporate purposes and to fund Unite’s development pipeline. 

“We are delighted to announce the launch and pricing of our new unsecured 10-year bond,” said Joe Lister, chief financial officer at Unite Group.

“The new financing will provide increased flexibility to support our portfolio strategy as well as lengthening the maturity and reducing our overall cost of debt.”

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