HG bonds: Duke Realty prices $500M of 2032 green bonds at T+82; terms

Duke Realty LP today completed an upsized $500 million offering of 2.25% long 10-year senior green bonds at T+82, or 23 basis points through early whispers.

The company intends to allocate an amount equal to the net proceeds to the financing or refinancing of eligible green projects, which fall under the headings of green buildings, energy efficiency, sustainable water and wastewater management, renewable energy, clean transportation, and pollution prevention and control, according to regulatory filings. Pending such allocation, it may use the proceeds to repay borrowings outstanding on its unsecured line of credit, which amounted to $156 million as of Sept. 30.

Today's offering marks the company's second green bond placement in 2021. On Jan. 11, Duke Realty completed an upsized $450 million offering of 1.75% 10-year notes due Feb. 1, 2031, at T+70. The notes changed hands on the secondary market on Friday at T+78, or well above the coupon rate, at 2.34%, according to MarketAxess.

The BBB+/Baa1 profile for the new notes reflects stable outlooks on both sides. The issuer operates as a subsidiary of Duke Realty Corp., a real estate investment trust that owns and operates industrial assets in major logistics markets.

Terms: