This article is from the Australian Property Journal archive
CHARTER Hall has secured $250 million of debt through the issuance of Australian dollar medium-term notes with a 10-year maturity.
The notes were priced at a fixed coupon of 3.1% and were swapped back to a floating exposure, providing an all up cost of debt of 1.5% each year at the current floating rate.
They are expected to settle on 21 April.
Russell Proutt, group CFO said issuance was strongly supported by domestic and international investors, and consistent with its strategy to increase liquidity, extend weighted average debt maturity, now at 6.9 years, and diversify sources of debt capital.
“Our wholesale partnerships continue to grow and we expect further investment by the group to accelerate the growth of existing partnerships and new capital partnerships with both domestic and offshore wholesale investors,” Charter Hall’s group managing director and CEO, David Harrison said.
“Further deployment of co investment capital is expected to drive growth in the property investment earnings segment of CHC, which is expected to also drive property funds management earnings segments”.
It is the fourth issuance of its type across the broader Charter Hall funds management platform this financial year.
