Starwood Property Trust Announces Private Offering of $400M Sustainability Bonds 

Starwood Property Trust has announced a private offering of $400 million in unsecured senior notes due 2030, subject to market conditions. The company intends to use the net proceeds to fund or refinance eligible green and/or social projects.   

The funds will be used for general corporate purposes, including repayment of outstanding indebtedness under the company’s repurchase facilities, pending full allocation. 

The sustainability bonds will be made available to eligible institutional buyers. The Notes will not be originally registered under the Securities Act or state securities regulations, limiting their offer and sale in the U.S. unless properly registered or exempted, the company stated. 

Earlier this month, Starwood Property Trust announced it is offering 17,500,000 shares in an underwritten public offering.  The underwriters will have a 30-day option from the date of the offering to purchase up to an additional 2,625,000 shares.  

The funds will be used to originate and purchase additional commercial mortgage loans and other target assets and investments and may also use a portion of the funds for the repayment of outstanding indebtedness under the company’s repurchase facilities. 

Starwood Property Trust, Inc., an affiliate of global private investment firm Starwood Capital Group, is a diversified finance company with a core focus on the real estate and infrastructure sectors. As of June 30, 2024, the company has deployed over $98 billion of capital since inception and manages a portfolio of $26 billion across debt and equity investments.