As a result of strong investor demand, the Centuria Capital Group (ASX: CNI) has taken $50 million in oversubscriptions for its corporate notes, bringing the total offer size to $100 million
The group intends to issue $40 million through its floating rate tranche with a margin of 4.50% p.a over the 90-day BBSW (ISIN: AU3FN0035457) and the remaining $60 million through the 7% fixed rate notes (ISIN: AU3CB0243749).
The proceeds of the offer will be used to:
- Repayment of $50 million vendor loan to 360 Capital Group
- Support of the Centuria’s REIT co-investment programme
- Accelerate growth of the unlisted property funds division with greater seed capital capacity allowing larger and multiple transactions and this capital is recycled efficiently as funds settle
The notes are expected to commence trading on the 21st of April 2017.