Starwood Property Trust Sells $500 Million of ESG Junk Bonds (1)

Starwood Property Trust Inc., a real estate investment trust, sold $500 million of sustainability bonds in the high-yield market, only the second time a junk bond in the US has been offered with an ESG label this year.

The deal for the 5.5-year senior unsecured notes was led by the six biggest US banks along with Deutsche Bank AG and Barclays Plc, according to a person familiar with the matter, who asked not to be identified as the details are private. The deal was upsized by $100 million and its coupon, at 6.5%, priced at the tight end of ...