Issue of Debt

Hammerson PLC
22 May 2001
 
 
Hammerson Issues Euro 500,000,000 Unsecured Bonds due 2008 
 
Hammerson plc has launched an issue of Euro 500,000,000 unsecured Bonds due
2008. The joint lead managers and bookrunners to the issue are HSBC Bank plc
and J P Morgan Securities Ltd.
 
Interest will be payable annually in arrear on 20 June each year at the rate
of 6.25 per cent and the first such payment is due on 20 June 2002. Unless
previously redeemed in accordance with their terms, the Bonds will be
redeemed at par on 20 June 2008.
 
The Bonds were priced to yield a margin of 134.9 basis points over the gross
redemption yield of the 4.125 per cent Bund due July 2008, equivalent to
mid-swaps plus 108 basis points.
 
The Bonds were issued with a fixed re-offer and issue price of 99.586 per
cent.
 
The proceeds of the issue will be swapped to a floating rate and used to
repay drawings under Hammerson's existing committed bank facilities and for
general corporate purposes.
 
Application will be made to the Financial Services Authority for the Bonds to
be admitted to the Official List of the UK Listing Authority, and to the
London Stock Exchange plc for the Bonds to be admitted to trading. It is
expected that official dealings in the Bonds will commence on the London
Stock Exchange on 21 June 2001.
 
Simon Melliss, Group Finance Director, said:
 
    'The issue provides an important source of finance which supports
our strategy of building on Hammerson's position as a leading European real
estate company. The group now has a portfolio in France and Germany of over
£1 billion (Euros 1.7 billion). The issue attracted interest from a wide
range of European investors and was significantly oversubscribed.'

 
For further information:
 
Simon Melliss                                   Tel: [phone]
Group Finance Director                          Fax: [phone]
 
Christopher Smith
Director of Corporate Affairs