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SYDNEY, May 25 (Reuters) - Australia's Dexus Property Group
(DXS.AX) has approached investors to check their appetite for a
A$100-A$200 million ($78-$157 million) bond issue, two
investors who have been contacted on the sale said on Monday.
A Dexus spokeswoman was not immediately available for
comment.
The issue, which is in preliminary stages, would offer
four-year bonds at around 500 basis points over swap and
five-year bonds at around 530 bps over swap, both investors
said.
Commonwealth Bank of Australia (CBA.AX), Westpac (WBC.AX)
and ANZ (ANZ.AX) are leading the discussion with investors,
they also said.
CBA was not not immediately available to comment, and
Westpac and ANZ declined to comment.
The offer would be the second one in a week from a
non-financial borrower in Australia after an 18 month-drought.
It would follow Colonial First State Property Retail Ltd
(CFX.AX) which raised last week A$125 million in five-year
bonds at 475 basis points over swap.
Dexus Property Group is rated BBB+ by S&P and has A$450
million in outstanding bonds under the name of DB RREEF
Finance, according to Thomson Reuters data.
In April, ratings agency S&P highlighted in a report the
group's exposure to cyclical office and industrial assets,
particularly in the United States and Europe.
(Reporting by Cecile Lefort; Editing by Mark Bendeich)
