Scentre Group has successfully priced a A$650 million subordinated note issue in the Australian market. The offering includes A$350 million in floating-rate notes due 2055, with a margin of 2.00% above the 3-month BBSW, and A$300 million in fixed-to-floating rate notes carrying an initial coupon of 5.90%, swapped to mirror the same margin. These notes, lacking equity conversion features, are callable starting September 2031 and qualify for 50% equity credit from rating agencies.
The proceeds will finance the redemption of Scentre Group’s existing A$1.0 billion Subordinated Non-Call 2026 Fixed Rate Reset Notes due 2080, alongside drawings from bank loan facilities. Settlement is expected by March 31, 2025. The issuance is a strategic move to diversify subordinated note funding within the domestic market, extending the company’s subordinated note call date profile, and reducing the overall weighted average cost of debt.
Shares are trading 2.98% higher at $3.46.
