Just three weeks old, Scentre Group raises $3.045 billion in cheap European bonds

Scentre Group has raised more than $3 billion in European bonds overnight as the Westfield spinoff secured the large deals by the Australian company.

The deal was spread across four tranches with four to 12 year maturities:

• £400 million 12 year fixed rate senior guaranteed notes with a coupon of 3.875%.
• €600 million 10 year fixed rate senior guaranteed notes with a coupon of 2.25%.
• €600 million six year fixed rate senior guaranteed notes with a coupon of 1.50%.
• €400 million four year floating rate senior guaranteed notes at a spread of 0.65% over three month EURIBOR.

BNP Paribas, HSBC, Barclays and Deutsche Bank did the deal.

Scentre Group, which was formed only last month following a highly controversial demerger vote, holds the Australian and New Zealand operations of Westfield Retail Trust and Westfield Group.

The proceeds will be used to partially refinance Scentre Group’s $A5.0 billion bridge facility. Australian Financial Review columnist Tony Boyd noted offshore capital markets offer Australian companies the opportunity to lock in the cheapest long-term debt funding in more than six years.

Tony Boyd added it was now cheaper for companies to borrow in the Euromarkets than in the US, the world’s most liquid and active bond markets.