GMT Completes $200 million Wholesale Debt Issuance

Thursday 27th August 2020

Goodman (NZ) Limited, the Manager of Goodman Property Trust (“GMT” or “Trust”), is pleased to announce that GMT has priced two bond issues to wholesale investors.

A total of $200 million of fixed interest rate bonds has been priced and will issue to New Zealand wholesale investors on Friday 4 September 2020. The issuance comprises

$150 million of 10 year bonds paying 2.559% per annum, together with $50 million of 8 year bonds paying 2.262% per annum. Westpac1 was Lead Manager for the transactions.

The issues are expected to be rated BBB+ by S&P Global Ratings with the proceeds used to repay existing bank debt and provide general corporate funding for GMT, including pre- funding the repayment of the Trust’s $100 million GMB020 retail bond maturing in December 2020.

Andy Eakin, Chief Financial Officer of Goodman (NZ) Limited, said “We’ve taken advantage of historically low interest rates and very strong demand to secure additional long-term funding for GMT. Achieved at competitive margins, the issuance adds both tenor and further diversity to the Trust’s debt book.

With a weighted average term to expiry of 5.2 years, and more than $545 million of available liquidity following this issuance, GMT is well placed to take advantage of new development and investment opportunities.”

This capital management initiative has no material impact on the Trust’s earnings guidance for the current financial year.

Source: Goodman (NZ) Limited

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