RetailMon 23 Apr 18

Stockland Diversifies with $475m in Funding

Stockland has recently diversified its funding sources by issuing €300 million medium term notes.

Valued at AUD$475 million, the issue was for an eight-year term, with settlement expected on 27 April, 2018.

Stockland hope to use the new funding to reduce overall weighted average cost of debt and elongate the maturity of its weighted average debt.

Stockland chief financial officer Tiernan O’Rourke said the European funding deal helped Stockland to attract over 50 new accounts across a broad range of European and global investors.

“Stockland’s ability to continue to obtain competitive interest rates and long tenors from global debt markets is supported by our stable A- /A3 credit ratings and diversified business model,” he said.

Stockland’s pro forma weighted average debt maturity will increase from 5.1 years as at 31 December 2017 to 5.9 years, taking into account this funding.

In 2014, the company issued Australia’s first green bond with a €300 million ($433 million) seven-year bond issue.

The green bond issuance into the euro market further diversified Stockland's funding sources, helping to bankroll the development and redevelopment of green star rated retail, commercial, residential and retirement living projects.

Retail Residential Office International Australia Finance Project