ASX-listed mall operator Scentre Group is set to raise about $750 million in a hybrid investment deal.
According to the Australian Financial Review investors said they expected Scentre to pay a margin of 2.5 percentage points over the bank bill rate, or about 6.85 per cent based on current settings.
In its recent half-year results announcement Scentre said it will use the proceeds to fund the repurchase of up to $US550 million of its outstanding Non-Call 2026 Subordinated Notes sold in the US market. ANZ, National Australia Bank and UBS have been appointed to manage the offer.
Scentre is the owner of Australia’s Westfield malls and is expected to finalise the raising this week. It is not confirmed yet whether the format of the raising will be fixed rate, floating rate or a combination. The major banks in this market have regularly used hybrid securities to raise capital.
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Scentre last month released its half-year results to June with Funds From Operations of $568 million (10.95 cents per security, up 2 percent) and Distributions of $446 million (8.6 cents per security, up 4.2%).
The group operates 42 Westfield destinations across Australia and New Zealand, which hosted 320 million customer visits, an increase of 1.9 per cent.
As at 30 June 2024, the Group’s portfolio was valued at $34.3 billion.
