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Photo – Canva.
  • Charter Hall Long WALE REIT announced $500M in medium term notes.
  • Signals strong entry and growth in the debt capital market.
  • Notes to settle on 3 March 2021.

Charter Hall (ASX: CLW), known more for its commercial property business, has made a mark in the debt capital market scene.

The company announced to the ASX this morning some $500M in medium-term notes.

Comprising of $300M seven-year notes and $200M 10-year notes, the company’s Long WALE REIT Fund Manager, Avi Anger, said in a statement:

” The Notes will extend our debt maturity profile and enhance funding diversification without adversely impacting our cost of debt, which is an attractive outcome for CLW.”

Expecting to settle in early March, “the seven-year notes were priced at a fixed coupon of 2.09%”, the 10-year notes at a higher rate of 2.79%.

Charter Hall also stated that “Post issuance, CLW’s weighted average cost of debt is 2.3% and look through debt hedged of 70.6% is expected to be materially unchanged post issuance.”

The move by Charter Hall means their weighted average debt maturity has now been raised to 5.2 years, up from the previous 4.1.

“CLW’s sector leading long WALE of 14.1 years together with the length and diversity of our debt should contribute to reduce the volatility of our future returns.”

CLW opened at $4.59 this morning, up from their January figures of around $4.44, but weaker than Charter Hall’s February start.

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