- $250M in bonds issued with ten year maturity
- Previous fixed coupon rate 3.1% changed to floating exposure
- Settlement expected by 21 April 2021
It is an ideal time for bonds, said David Harrison, Group Managing Director and CEO of Charter Hall Group (ASX: CHC).
The company announced to the ASX today that it had “… priced $250 million of Australian dollar medium term notes with a ten-year maturity.”
The bond issuance is part of the company’s strategy, said Russell Proutt, Group CFO, who said the move would “… increase liquidity, extend our weighted average debt maturity, which is now 6.9 years, and diversify our sources of debt capital.”
“[It is] the fourth successful Australian dollar medium term note issuance across the broader Charter Hall funds management platform this financial year. This issue increases the volume of debt capital market issuance beyond $4 billion across the Platform’s $19 billion of debt facilities,”
Russell Proutt, Group CFO, Charter Hall Group
The notes issued “… were priced at a fixed coupon of 3.1% and were swapped back to a floating exposure, which provides an all up cost of debt of 1.5% per annum at the current floating rate. The notes are expected to settle on 21 April 2021,”.
This move provides the company with more flexibility to grow, Mr Harrison said that the “deployment of investment capital is expected to drive growth in the Property Investment earnings segment of CHC,” and drive earnings for the company.
“We wish to continue investing in our direct platform of funds which boast average WALE’s of 9 years across the suite of industrial, office and diversified fund portfolios.”
David Harrison, Group Managing Director and CEO, Charter Hall Group