Scoop has an Ethical Paywall
Licence needed for work use Learn More

Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 

Precinct raises $100 mln in oversubscribed bond

Precinct raises $100 mln in oversubscribed bond, rate set at 4.42%

By Paul McBeth

Nov. 17 (BusinessDesk) - Precinct Properties New Zealand has raised $100 million in an oversubscribed seven-year bond, paying annual interest at the bottom end of its indicative margin.

The Auckland-based commercial property investor's $75 million offer was oversubscribed, with all $25 million of extra allocations taken up, it said in a statement. The price was set in a bookbuild at a margin of 1.5 percent above the seven-year swap rate, the bottom of an indicative range between 1.5-and-1.6 percent. The bonds will pay annual interest of 4.42 percent.

The funds raised will repay bank debt and be used for corporate purposes, the company said.

Precinct's seven-year bond is its second debt market issue this year, after it raised $150 million in September through a four-year, fixed rate convertible note paying annual interest of 4.8 percent. Persistently low interest rates have kept companies keen on raising capital through the debt market, which has seen $2.77 billion of new listings compared to just $480 million of new equity listings.

The company's shares slipped 0.4 percent to $1.305, having gained 9.2 percent so far this year. The stock's trading at a yield of 4.3 percent.

(BusinessDesk)

ends

Advertisement - scroll to continue reading

© Scoop Media

Advertisement - scroll to continue reading
 
 
 
Business Headlines | Sci-Tech Headlines

 
 
 
 
 
 
 
 
 
 
 
 
 

Join Our Free Newsletter

Subscribe to Scoop’s 'The Catch Up' our free weekly newsletter sent to your inbox every Monday with stories from across our network.