SYDNEY, May 26 (Reuters) - Australia's largest listed
industrial property group, Goodman Group plans to
refinance debt in the international bond markets, the company
said on Wednesday.
'We don't have urgent needs but we will look to replace with five and seven-year money,' Chief Executive Gregory Goodman told Reuters in a brief telephone interview, adding he expected to refinance in the next six months.
The borrower has a preference for the overseas bond markets as it does not consider Australia's bond market deep enough to accept long-term debt.
Bonds issued by non-financial companies in Australia are rare with only A$1.3 billion raised this year in six offers, out of a total exceeding A$32 billion. Although some of the new issues seen this year offered seven-year maturities, issue sizes were tiny, deterring many Australian firms which tend to prefer the U.S. traditional private placement market.
To see Australia's bond log, double click on.
Goodman Group's next debt maturity is in 2013, when it will need to refinance a couple of billion dollars.
'The U.S. and Europe will definitely be on the agenda for the future years,' Goodman said. He declined to say whether an offer was already in motion.
Goodman already has a bond programme in place in Europe, where it raised 250 million pounds ($360 million) in 2018 bonds in 2008.
The property group said earlier on Wednesday it had received A$297 million ($246 million) in new loans to refinance 2010 maturities.
The debt included a A$250 million 5-year loan provided by Challenger Life Company to refinance a commercial mortgage backed securities issue maturing in September, it said. The loan was for unlisted fund Goodman Australia Industrial Fund.
' is not using banks because we want to make sure we diversify,' Goodman said.
The borrower is keen to extend their maturity profile and to diversify its funding base following the global financial crisis which left many companies stranded when banks were unwilling to lend.
There other debt facility consisted of a A$94 million loan from Commonwealth Bank of Australia for Goodman's joint venture with Brickworks Ltd.
Goodman declined to disclose pricing details of the debt facilities but said it was in line with market rates.
Goodman Group is rated BBB by S&P.
(Reporting by Cecile Lefort; editing by Balazs Koranyi)
((cecile.lefort@reuters.com; +612-9373-1234; Reuters Messaging: cecile.lefort.reuters.com@reuters.net)) ($1=1.208 Australian Dollar) ($1=.6937 Pound) Keywords: GOODMAN/DEBT (If you have a query or comment on this story, send an email to news.feedback.asia@thomsonreuters.com) COPYRIGHT Copyright Thomson Reuters 2010. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
'We don't have urgent needs but we will look to replace with five and seven-year money,' Chief Executive Gregory Goodman told Reuters in a brief telephone interview, adding he expected to refinance in the next six months.
The borrower has a preference for the overseas bond markets as it does not consider Australia's bond market deep enough to accept long-term debt.
Bonds issued by non-financial companies in Australia are rare with only A$1.3 billion raised this year in six offers, out of a total exceeding A$32 billion. Although some of the new issues seen this year offered seven-year maturities, issue sizes were tiny, deterring many Australian firms which tend to prefer the U.S. traditional private placement market.
To see Australia's bond log, double click on.
Goodman Group's next debt maturity is in 2013, when it will need to refinance a couple of billion dollars.
'The U.S. and Europe will definitely be on the agenda for the future years,' Goodman said. He declined to say whether an offer was already in motion.
Goodman already has a bond programme in place in Europe, where it raised 250 million pounds ($360 million) in 2018 bonds in 2008.
The property group said earlier on Wednesday it had received A$297 million ($246 million) in new loans to refinance 2010 maturities.
The debt included a A$250 million 5-year loan provided by Challenger Life Company to refinance a commercial mortgage backed securities issue maturing in September, it said. The loan was for unlisted fund Goodman Australia Industrial Fund.
' is not using banks because we want to make sure we diversify,' Goodman said.
The borrower is keen to extend their maturity profile and to diversify its funding base following the global financial crisis which left many companies stranded when banks were unwilling to lend.
There other debt facility consisted of a A$94 million loan from Commonwealth Bank of Australia for Goodman's joint venture with Brickworks Ltd.
Goodman declined to disclose pricing details of the debt facilities but said it was in line with market rates.
Goodman Group is rated BBB by S&P.
(Reporting by Cecile Lefort; editing by Balazs Koranyi)
((cecile.lefort@reuters.com; +612-9373-1234; Reuters Messaging: cecile.lefort.reuters.com@reuters.net)) ($1=1.208 Australian Dollar) ($1=.6937 Pound) Keywords: GOODMAN/DEBT (If you have a query or comment on this story, send an email to news.feedback.asia@thomsonreuters.com) COPYRIGHT Copyright Thomson Reuters 2010. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
© 2010 AFX News
