CapitaLand subsidiary Australand has arranged an unsecured syndicated bank debt facility worth A$1.3-billion (S$1.57 billion).
Kieran Pryke, chief financial officer of Australand, said: “We are pleased to have achieved this first step in moving to a totally unsecured borrowing platform.”
The new established facility replaced existing secured facilities amounting A$1.15 billion. It comprises three tranches – A$325 million that will expire in June 2014, A$650 million in June 2013 and A$325 million in June 2012.
The former secured facilities, on the other hand, includes a A$750-million multi-option facility expiring in August 2011, and three secured bank bilateral facilities worth A$248 million, A$100 million and A$48 million that will expire in April, June and November 2012, respectively.
“The new facility represents further progress against the group’s capital management objectives, unencumbering approximately A$2.4 billion of assets and improving its liquidity position,” Mr. Pryke added.
The facility extends the company’s debt maturity profile to 2.6 years and reduces the amount of debt expiring in any one year.
Australand has also established a medium-term euro note programme to grant access to offshore debt capital markets. It will help the company further improve its access to longer-dated funding and diversify its sources of debt capital.
“This transaction demonstrates the support of Australand’s relationship with banks and positions the group well by improving its financial flexibility and further diversifying its funding sources,” Mr. Pryke said.