Scentre Group prices US$750 million of senior notes at 6.20%
Scentre Group (ASX: SCG) priced US$750 million (A$1,079 million) of 10-year guaranteed senior notes with a fixed coupon of 6.20% on 8 October 2026. The notes were priced in the United States market under US Rule 144A/Regulation S.
The company detailed the pricing in an ASX announcement dated 9 October 2026, with settlement scheduled for 16 October 2026. Scentre Group owns 42 Westfield destinations across Australia and New Zealand, encompassing 12,000 outlets.
For investors, a US dollar issue of this size points to continued access to international debt capital markets.
Key deal terms
The table below sets out the main terms disclosed in the announcement.
| Term | Detail | Why it matters |
|---|---|---|
| Issue size | US$750 million (A$1,079 million) | Indicates the scale of the offshore debt raise |
| Tenor | 10-year guaranteed senior notes | Sets the length of the debt commitment |
| Fixed coupon | 6.20% | The fixed interest rate on the US dollar notes |
| Swapped margin | 141 basis points over 3-month BBSW | The A$ cost reference after the swap |
| Settlement | 16 October 2026 | Date the issue is scheduled to settle |
The notes were priced on 8 October 2026, while the announcement is dated 9 October 2026.
When big ASX news breaks, our subscribers know first
Swapped to floating-rate A$ liability
Principal and interest payment obligations on the notes have been swapped to a floating rate A$ liability at a margin of 141 basis points over 3-month BBSW. The 6.20% coupon is therefore not Scentre Group’s all-in cost, and the swapped margin is the A$ cost reference.
Because the obligations have been swapped to A$, the A$ outcome is the figure that matters for investors rather than the US dollar coupon.
According to the announcement, proceeds of the issue will be used for:
- General corporate purposes
- Including to repay existing indebtedness
The announcement does not specify which debt will be repaid, the amount, or a credit rating.
Educational: what are US 144A senior notes?
A Rule 144A/Regulation S issue is a bond sold to institutional investors in the US and offshore rather than to retail investors. The notes are not offered in the US other than under exemptions from registration requirements.
A fixed coupon is an interest rate that stays the same for the life of the bond. BBSW is the Australian bank bill swap rate, a benchmark for A$ floating rates, and a basis point is one-hundredth of a percentage point. Issuers often swap foreign-currency debt back to A$ so repayments are in their home currency, and tapping more than one market diversifies funding sources.
Capital management strategy: return to the US market
The transaction marks the Group’s return to the US market. According to the announcement, it aligns with the Group’s capital management strategy, which aims to:
- Diversify funding sources
- Extend the weighted average maturity of debt
- Reduce the overall weighted average cost of capital
Longer debt maturity and lower funding costs are generally associated with balance sheet resilience. The announcement does not provide updated weighted average maturity, gearing or cost of capital figures, so the impact cannot be quantified.
The US issue follows Scentre’s earlier raise of domestic six-year senior notes in April, which were also swapped to a floating margin over BBSW and used to repay existing indebtedness.
The next step is settlement, scheduled for 16 October 2026. The release was authorised by the Chief Executive Officer.
Stay Ahead on Real Estate and REIT News Before the Market Moves
Get FREE breaking ASX news delivered to your inbox within minutes of release, complete with in-depth analysis. Join 20,000+ investors already receiving real-time alerts from Big News Blast. Click the “Free Alerts” button now to be first to know when market-moving announcements hit.