Friday 24th February 2012
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Fletcher Building has used its new Australian Medium Term Note Programme to secure approximately $150 million of long term debt from the Japanese institutional investment market.
The Australasian construction sector firm issued 10 billion Yen on a 15 year term at an undisclosed fixed interest rate, and swapped the placement out immediately to floating Australian dollars to repay existing debt and lengthen the group’s loan book.
“We are very pleased to be able to issue debt in a new currency with a new investor base", said Fletcher Building's chief financial officer, Bill Roest. The issue follows a similar US private placement last month.
Morgan Stanley advised on the latest transaction.
Fletcher Building announced weaker than expected first half profits this week, reflecting the sluggish Australian domestic economy and prolonged delay in the reconstruction of Christchurch following multiple major earthquakes in the city.
However, shares of the company are even for the week, trading late Friday at $6.38 apiece.
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