Kiwi Property closes US$129.4M green bond at two-times demand
What's the deal? Kiwi PropertyDealroom has a profile for this one. Try Dealroom → has closed a US$129.4M (around $114 million) green bond offer, its seven-year fixed-rate senior secured issue. The raise, a post-IPO debt deal, included US$32.4M in oversubscriptions and was priced at a margin of 1.20% per annum.
Who backed it? Craigs Investment PartnersDealroom has a profile for this one. Try Dealroom → arranged and co-managed the offer, alongside joint lead managers ANZ Bank New Zealand, Bank of New ZealandDealroom has a profile for this one. Try Dealroom →, and Forsyth Barr Capital Markets. S&P Global RatingsDealroom has a profile for this one. Try Dealroom → confirmed the bonds will carry a BBB+ issue credit rating.
Why it stands out: The bookbuild drew US$255.6M in total demand at the 1.20% margin — roughly two times coverage of the offer size, including oversubscriptions. Demand came from both retail and institutional investors.
What's the endgame? Kiwi Property — one of the largest listed property companies on the New Zealand Stock Exchange and a member of the S&P/NZX 20 Index — owns mixed-use, retail, and office buildings. Chief executive officer Clive Mackenzie said the result "reflects the quality of our portfolio, including our newly-rated NABERSNZ shopping centre assets."
Mackenzie added that New Zealand debt capital markets "remain an important part of our funding mix," helping the company diversify funding and lengthen its debt maturity profile.
The signal: The oversubscription and two-times coverage point to continued appetite for green-labelled corporate debt tied to rated, sustainable property assets — even as the amount sits modestly within the broader market. The interest rate and final terms sheet are due later today.
Read more: sharechat.co.nz
Image credit: Generated with Gemini
