ASX-listed Scentre Group has raised US$3bn in new debt, issuing subordinated hybrid notes in the US markets for the first time.
The retail REIT issued US$1.5bn of 60-year, non-call 6-year subordinated notes with a coupon of 4.75% and US$1.5bn 60-year, non-call 10-year subordinated notes with a coupon of 5.125%.
The group said the new financing diversified its sources of capital and was expected to be a long-term feature of its funding. Scentre said it had sufficient long-term liquidity to cover all debt maturities until early 2024.
“Following the issuance, the group will reduce its indebtedness including borrowings under the group’s revolving bank facilities,” the company said.
Scentre Group shares closed 2.2% higher at A$2.32 on Thursday.
|Index||Change||Value at close|
|S&P/ASX 200 A-REIT||-1.25%||1,284.00|
| S&P/ASX 200 ||-0.71%||5,822.60|
|FTSE ST REITS||-0.98%||854.28|
|Tokyo Stock Exchange REIT||-2.64%||1,694.01|
|Nikkei 225 ||+0.18%||23,360.30|
|Hang Seng REIT||-1.09%||5,547.43|
GLP J-REIT raises ¥5bn from sustainability bonds
Tokyo-listed GLP J-REIT has raised ¥5bn in new debt from the sale of sustainability-linked bonds.
The GLP sustainability bonds have a coupon rate of 0.51%, a AA credit rating from the Japan Credit Rating Agency, and are set to mature in September 2030. The REIT has issued green bonds on three occasions since December 2018, as part of its green financing and environmental sustainability initiatives.
Among the sustainability bond investors were Iwaki Shinkumi, Uwajima Shinkin Bank, Echizen Shinkin Bank, Credit Guarantee Corporation of Osaka, North Pacific Bank, and others. MUFG Bank was the issuing agent, while SMBC Nikko Securities, Daiwa Securities and Mizuho Securities were the underwriters.
“With the issuance of the sustainability Bonds, a sustainability finance initiative to raise funds for a project that will contribute to solving social issues as well as to preserving the environment, GLP J-REIT aims to further promote ESG activities and enhance the means of finance to meet the needs of an expanding the base of investors willing to invest in ESG,” the company said.
Shares in GLP J-REIT finished trading 0.36% higher at ¥168,500 on Thursday.