Charter Hall Group secures $250 million of 10-year debt to drive Investment Capacity and earnings

Charter Hall Group (ASX: CHC) (Charter Hall or the Group) announces that it has priced $250 million of Australian dollar medium term notes (Notes) with a ten-year maturity.

The Notes were priced at a fixed coupon of 3.1% and were swapped back to a floating exposure, which provides an all up cost of debt of 1.5% per annum at the current floating rate. The Notes are expected to settle on 21 April 2021, with the proceeds used to provide growth capital for the Group.

Russell Proutt, Group CFO stated that

“This bond issuance is consistent with our strategy to increase liquidity, extend our weighted average debt maturity, which is now 6.9 years, and diversify our sources of debt capital. We are pleased that the transaction was strongly supported by domestic and international investors with this representing the fourth successful Australian dollar medium term note issuance across the broader Charter Hall funds management platform this financial year. This issue increases the volume of debt capital market issuance beyond $4 billion across the Platform’s $19 billion of debt facilities, of which $13 billion net of cash is drawn, providing significant liquidity and investment capacity across the Platform including the balance sheet of CHC”.

David Harrison, Group Managing Director and CEO further noted

“We are pleased to expand our Investment Capacity at a time where we see attractive risk adjusted returns investing in the growth of our funds and partnerships. In particular, we wish to continue investing in our Direct platform of funds which boast average WALE’s of 9 years across the suite of industrial, office and diversified fund portfolios. Our wholesale partnerships continue to grow and we expect further investment by the Group to accelerate the growth of existing partnerships and new capital partnerships with both domestic and offshore wholesale investors. Further deployment of co investment capital is expected to drive growth in the Property Investment earnings segment of CHC, which is expected to also drive Property Funds Management earnings segments”.

Announcement Authorised by the Chair and Group Managing Director and CEO

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