Fletcher Building has used its new Australian Medium Term Note Programme to secure approximately NZ$150 million of long term debt from the Japanese institutional investment market.
Fletcher 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 US$300 million 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, plus the strong Australian and New Zealand dollars.
However, shares of the company are even for the week, trading late on Friday at NZ$6.38 apiece.
We welcome your comments below. If you are not already registered, please register to comment.
Remember we welcome robust, respectful and insightful debate. We don't welcome abusive or defamatory comments and will de-register those repeatedly making such comments. Our current comment policy is here.