Conglomerate Wesfarmers Ltd
(ASX:WES) is to raise 500 million Euros, around $755 million Australian dollars, following the successful pricing of an inaugural issue of bonds under its Euro Medium Term Note programme.
The company says the issue consists of notes with a tenor of five years and four months at a margin of 135 basis points over the Euro five year mid swap rate, maturing in July 2015.
Wesfarmers says it intends to apply the proceeds to the repayment of existing shorter term borrowings, which may result in bringing forward interest rate hedge close out costs of around $30 million to $40 million into the fiscal 2010 year.
Finance Director Terry Bowen says the company is very pleased with the result of the issue which was heavily over-subscribed.
Mr Bowen says this further diversifies the company’s funding sources and reflects continued strong support for Wesfarmers from debt investors.
For the 12 months to June 30, 2009 Wesfarmers reported profit of $1.54 billion.
