Impact Group Announces $40 million Bond Issue Through FIIG

Home builder Impact Group has become the latest company in the property industry to undertake a bond issue arranged by FIIG Securities, announcing a $40 million issue of 5-year fixed rate notes.

Impact Group follows previous property sector issuers including Brisbane-based developers Sunland Group and Stockwell, Sydney-based property investment group 360 Capital, Sydney-based developer Payce, and global infrastructure developer Plenary.

FIIG CEO Mark Paton said that bond issues had a number of advantages which explained their growing popularity with corporates in the property industry.

“Impact Group is one of Australia’s most respected home builders so its decision to issue a bond is a boost for this segment of the bond market and also highlights the attractiveness of bond issues for companies in the property sector,” Mr Paton said.

“Bonds are a very efficient way for builders and developers to diversify their debt and extend its duration while forming a relationship with a whole new base of potential investors.”

FIIG Securities CEO Mark Paton[/caption]Mr Paton said the process of issuing a bond could be surprisingly quick for quality issuers, with transactions only requiring six to eight weeks from start to finish.

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