Ann: Goodman signs MOU in China , page-8

SYDNEY, May 26 (Reuters) - Australia's largest listed
industrial property group, Goodman Group (GMG.AX) plans to
refinance debt in the international bond markets, the company
said on Wednesday. "We don't have urgent needs but we will look to replace
[the 2013 debt] with five and seven-year [bond] money," Chief
Executive Gregory Goodman told Reuters in a brief telephone
interview, adding he expected to refinance in the next six
months. The borrower has a preference for the overseas bond markets
as it does not consider Australia's bond market deep enough to
accept long-term debt. Bonds issued by non-financial companies in Australia are
rare with only A$1.3 billion raised this year in six offers,
out of a total exceeding A$32 billion. Although some of the new
issues seen this year offered seven-year maturities, issue
sizes were tiny, deterring many Australian firms which tend to
prefer the U.S. traditional private placement market. To see Australia's bond log, double click on AULOG2010. Goodman Group's next debt maturity is in 2013, when it will
need to refinance a couple of billion dollars. "The U.S. and Europe will definitely be on the agenda for
the future years," Goodman said. He declined to say whether an
offer was already in motion. Goodman already has a bond programme in place in Europe,
where it raised 250 million pounds ($360 million) in 2018 bonds
in 2008. The property group said earlier on Wednesday it had
received A$297 million ($246 million) in new loans to refinance
2010 maturities. The debt included a A$250 million 5-year loan provided by
Challenger Life Company to refinance a commercial mortgage
backed securities issue maturing in September, it said. The
loan was for unlisted fund Goodman Australia Industrial Fund. "[The facility] is not using banks because we want to make
sure we diversify [from banks]," Goodman said. The borrower is keen to extend their maturity profile and
to diversify its funding base following the global financial
crisis which left many companies stranded when banks were
unwilling to lend. There other debt facility consisted of a A$94 million loan
from Commonwealth Bank of Australia for Goodman's joint venture
with Brickworks Ltd. Goodman declined to disclose pricing details of the debt
facilities but said it was in line with market rates. Goodman Group is rated BBB by S&P.