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.
