PFI launches $100m bond offer, another $50m available

3rd March 2025 By Staff Reporter | news@propertyticker.co.nz | @propertyticker

Property for Industry Limited has launched a $100m bond offer, with the ability to accept oversubscriptions of up to an additional $50m.

The offer of 5.5 year senior secured fixed rate bonds maturing on 13 September 2030 will be available to New Zealand retail and institutional investors and Australian institutional investors.

PFI told the NZX that the bonds will have identical rights, privileges, limitations and conditions – except for the interest rate and maturity date – as its bonds maturing on 1 October 2025.

The interest rate for the new bonds will have a minimum of 5.15% and be the sum of the base rate plus an indicative issue margin of between 1.65% and 1.75% per annum.

The minimum application is $5,000.

“The proceeds of the offer will be used to repay existing bank debt facilities and for general corporate purposes,” said the industrial property specialist in the offer’s term sheet.

PFI will conduct a bookbuild process on 6 March 2025, after which it will set the issue margin, which will determine the interest rate. The bonds are expected to be issued on 13 March 2025.

The company told the NZX that there would be no public pool for the offer, with all the bonds reserved for clients of the joint lead managers Westpac, Commonwealth Bank of Australia, Craigs Investment Partners, and Forsyth Barr.

PFI said it has a nationwide portfolio of 91 properties valued at $2.1bn and leased to around 124 tenants.

It settled last week its $8.5m purchase of a site at 316 Neilson Street in Penrose, Auckland.