Green Property has initiated a £100 million sterling (€154 million) eurobond.

The proceeds from the unsecured bond will be used to retire secured debt. This, said finance director, Mr Danny Kitchen, will provide the group with greater flexibility.

The 10-year issue matures on July 27th, 2009. It was issued at a spread of 2.10 percentage points over the 5.75 per cent British Treasury Stock 2009. The coupon is 7.25 per cent, payable annually. Issued at 99.107 per cent, the holders will receive a yield of 7.32 per cent.

Asked if this was too high a yield to pay, Mr Kitchen said a number of institutions were looking for more but "we were still able to fill it" at the set coupon. Noting that the market had been very turbulent, he said it might have been possible to shave 10 to 20 basis points in better conditions. The issue, he added, was met with an enthusiastic reception from a broad range of predominantly British institutional investors.

While the group may end up paying a little more interest, he noted it was a 10-year issue and such issues "cost marginally more". The issue is designed to reorganise the group's debt. Green, he said, had a lot of currency exposure with only 70 per cent of borrowings in sterling and 30 per cent in Irish currency.

Green is to apply to the London Stock Exchange to have the bonds quoted. The listing is expected to be granted by July 27th after which dealings will commence.