Starwood Property Trust Prices Private Placement of Sustainability Bonds

MIAMI BEACH, Fla. – Starwood Property Trust (NYSE: STWD), a major player in real estate finance, announced the pricing of a private offering of $500 million in unsecured senior notes, maturing in 2028. The notes carry a coupon of 5.250%, equating to a spread of 168 basis points above the three-year U.S. Treasury bond. Priced at 100% of the principle amount, the offering is expected to close on October 6, 2025, pending standard closing procedures.

Sources within Starwood indicate that the net proceeds from the offering are earmarked for “green and/or social projects” – a move analysts interpret as aligning with growing investor demand for ESG (Environmental, Social, and Governance) focused investments. This allocation strategy not only provides capital for sustainable initiatives but also potentially enhances the company’s long-term appeal to environmentally conscious investors.

Initially, funds will be directed towards financing or refinancing recently completed or planned initiatives that fulfill the company’s green and social criteria. Any net proceeds allocated to cover prior expenses related to these eligible projects will become available for repaying existing debt. Pending the complete allocation to the targeted projects, the company plans to use these proceeds for general corporate purposes, potentially including the repayment of outstanding debt under its repurchase agreements.

The notes were offered exclusively to qualified institutional buyers under Rule 144A of the Securities Act of 1933 and to non-U.S. persons outside the United States under Regulation S, ensuring adherence to securities regulations and targeting sophisticated investors.

This announcement does not constitute an offer to sell, or the solicitation of an offer to buy, these securities, nor shall there be any sale of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of that jurisdiction.

Starwood Property Trust: At A Glance

Starwood Property Trust, an affiliate of Starwood Capital Group, focuses primarily on real estate and infrastructure financing. The company stated that it has deployed a total of $108 billion in capital and holds a portfolio exceeding $27 billion in debt and equity investments as of June 30, 2025. The company aims to maintain stable shareholder returns, primarily through strategic dividends, and through risk-adjusted investments within its target asset classes.

Forward-Looking Statements

This release contains forward-looking statements subject to risks and uncertainties as defined under Section 27A of the Securities Act and Section 21E of the Securities Exchange Act of 1934. These statements include projections regarding the offering’s completion date and the utilization of proceeds. While the company believes these statements are based on reasonable assumptions, there is no guarantee these expectations will be achieved. Factors that may cause actual results to differ materially include risks outlined in the company’s annual report on Form 10-K for the year ended December 31, 2024, and its quarterly reports on Form 10-Q for the quarters ended March 31, 2025, and June 30, 2025. These risks include, but are not limited to, borrower defaults, real estate value impairments, availability of mortgage opportunities, potential mismatches in asset and financing maturities, evolving economic conditions, geopolitical events, changes in government regulations, increased competition, interest rate fluctuations, liquidity availability, and difficulties related to acquisitions.