Property for Industry Secures Landmark Bond Deal in 2025
Deal News | Mar 11, 2025 | Chapman Tripp
In a significant transaction marking New Zealand's first retail corporate bond deal of 2025, Property for Industry Limited (PFI) launched a $150 million bond offer. This marked PFIs re-entry into the bond market after its last offer in 2018. The 5.5-year senior secured fixed rate bonds, priced at 5.43% p.a. with a margin of 1.65% p.a., were positioned at the tight end of their indicative margin range and included $50 million in oversubscriptions. The offer was open to New Zealand retail and institutional investors, along with Australian institutions. The Chapman Tripp legal team, led by Luke Ford and Tom Yates, provided pivotal support and advice for this transaction. Westpac NZ played a crucial role as Arranger and Joint Lead Manager, with contribution from CBA, Craigs, and Forsyth Barr as Joint Lead Managers. The bonds are set to be issued on March 13 and will be listed on the NZX the following day. PFI, with an extensive industrial property portfolio valued at over $2 billion, cements its commitment to the sector with this strategic financial decision.
Sectors
- Real Estate
- Financial Markets
Geography
- New Zealand – The bond offering and issuance occur in New Zealand, with additional participation from Australian institutional investors.
- Australia – Australian institutional investors are explicitly mentioned as participants in the bond offering.
Industry
- Real Estate – The article primarily focuses on Property for Industry Limited, which operates within the real estate sector by maintaining a significant portfolio of industrial properties.
- Financial Markets – The bond offer represents an activity within the financial markets, particularly involving corporate bonds targeted at retail and institutional investors.
Financials
- $150 million – Total value of the bond offering, including oversubscriptions.
- 5.5-year – The term duration of the bond issued.
- 5.43% p.a. – Interest rate of the bonds.
- 1.65% p.a. – Margin of the bonds' interest rate.
- $50 million – Amount related to oversubscriptions in the bond offering.
- $2 billion – Valuation of PFI's industrial property portfolio.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Property for Industry Limited (PFI) | Issuer | Company | A leading industrial property owner in New Zealand, making their first bond issuance since 2018. |
| Chapman Tripp | Legal Advisor | Company | Provided comprehensive legal advice and support during the bond issuance for PFI, led by Luke Ford and Tom Yates. |
| Westpac NZ | Arranger and Joint Lead Manager | Company | Acted as the Arranger and one of the Joint Lead Managers for PFI's bond offer. |
| Commonwealth Bank of Australia (CBA) | Joint Lead Manager | Company | Participated as one of the Joint Lead Managers in the bond offer. |
| Craigs Investment Partners | Joint Lead Manager | Company | Involved as a Joint Lead Manager in the bond transaction. |
| Forsyth Barr | Joint Lead Manager | Company | Also participated as a Joint Lead Manager in PFI's bond transaction. |