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SYDNEY, July 17 (Reuters) - Australian Prime Property Fund
(APPF) is considering selling at least A$150 million ($121
million) in three-year bonds between 300 and 350 basis points
over swap, two fund managers who have been contacted on the
sale said on Friday.
Pricing is expected early next week, one of them said.
They declined to be named because they were not allowed to
speak to the press.
Commonwealth Bank of Australia and Westpac Banking Corp,
which are jointly managing the offer, declined to comment.
The unlisted fund told investors during a non-deal roadshow
in June that it was reviewing its options to refinance A$150
million ($118 million) of bonds maturing in September.
APPF is managed by builder Lend Lease Corp (LLC.AX).
APPF, which is rated A by S&P, declined to comment. The
fund has combined assets of A$5 billion, according to its Web
site.
Dexus Property Group (DXS.AX) is another Australian real
estate firm also looking at pricing a bond early next week, the
same fund managers said.
The borrower is eyeing a five-year bond at 450 basis points
over swap, they said.
ANZ, Commonwealth Bank of Australia, Credit Suisse,
Macquarie and Westpac are jointly leading the offer.
Dexus was not available to comment. The firm is rated
BBB-plus by S&P.
A third company, Australian construction firm Leighton
Holdings (LEI.AX), is also seeking A$150 million in bonds.
[ID:nSYD196033].
Bond issues from non-financial borrowers are rare in
Australia, and particularly since the global financial crisis.
Corporate bonds represent only 12 percent of total local bond
issuance, according to Reserve Bank of Australia statistics.
(Reporting by Cecile Lefort)
