Kiwi Property bond offer oversubscribed

The rate is at the bottom of the indicative range.

Kiwi Property Group has raised $125 million in seven-year bonds, accepting $50 million in oversubscriptions after a bookbuild set the interest rate at the bottom end of the indicative range.

The interest rate for the fixed-rate senior secured bonds will be 4.33 percent per annum, which reflects a margin of 1.45 percent over the seven-year swap rate, the Auckland-based company said in a release to the stock exchange. The indicative rate was a range of 1.45-to-1.55 percent, with annual interest of at least 4.25 percent. The bonds will be issued on Dec. 19 and mature on Dec. 19, 2024.

There was no public pool for Kiwi Property's offer, with all the bonds being reserved for clients of joint lead managers Deutsche Craigs and Westpac Banking Corp, co-managers Bank of New Zealand and Forsyth Barr and NZX participants and other approved financial intermediaries.

The bonds are expected to be assigned an issuer credit rating of BBB+ by Standard & Poor's, it said.

Kiwi Property Group manages a $2.9 billion portfolio of real estate and has previously said the funds would be used to repay bank loans and for general business use.

The company's shares fell 1.5 percent to $1.355, having slipped 0.3 percent so far this year.