Investing

DEXUS Finance Pty Ltd

Real Estate

DEXUS Finance Pty Ltd

Latest price

$ 106.40

  • ASX code
    YTMDXS
  • Maturity date
    10-Sep-2018
  • Capital structure
    Senior Unsecured
  • Coupon type
    FIXED
  • Coupon P.A
    5.75%
  • Issue Date
    10-Sep-2012
  • Next ex. distribution date
    31-Aug-2017
  • Next interest payment date
    10-Sep-2017
  • Payment frequency
    Semi-Annual

Issuer

DEXUS Finance Pty Ltd 

Guarantor

DEXUS Funds Management Limited as trustee or responsible entity of a number of trusts and other group entities. 

Base terms

DEXUS Securities Issuance Programme dated 31 August 2012

Pricing supplement

Dated 5 September 2012 and subsequently 17 September 2012, 16 October 2012, 19 December 2012 and 2 May 2013. 

Nature of the bonds

The Bonds and Guarantee will each be direct, unsubordinated and unsecured obligations of the Issuer and Guarantors, respectively, and will rank at least pari passu with all other unsubordinated and unsecured obligations of the Issuer and each Guarantor other than those mandatorily preferred by law.

Issue Size

A$205,000,000

Interest rate

5.75% per annum, payable semi-annually (in two coupons of 2.875%) in arrears on 10 March and 10 September in each year, including the Maturity Date.

Bond denomination

A$10,000

Repayments at the Maturity Date

On the Maturity Date, Bondholders are scheduled to receive the Face Value and the final payment of Interest.

Early Redemption by Issuer

Yes, in certain circumstances, for tax reasons.

Key benefits

Key benefits include:

  • interest paid semi-annually in arrears;
  • interest paid as 100% cash;
  • interest is not deferrable nor are interest payments discretionary;
  • rank equally with all other senior and unsecured creditors of the Issuer.

Key risks

The value of an investment in Dexus Bonds may fluctuate due to various factors, including investor perceptions, worldwide economic conditions, interest rates, debt market conditions and factors that may affect Dexus’ financial performance. The following risks may also affect an investment in Dexus Bonds:

  • Liquidity risk – an active secondary market in respect of the Bonds may never be established or may be illiquid and this would adversely affect the value at which an investor could sell the Bonds
  • Interest rate risk – the value of Fixed Rate Bonds may be adversely affected by movements in market interest rates
  • Structural risk – the Issuer has no material assets or sources of revenue except for claims against, and advances made to it by, other Group companies under intercompany loans and assets or liabilities under certain hedging arrangements
  • Obsolescence risk – relating to the industrial portfolio of the Group
  • Legal risks – relating to litigation and regulatory actions
  • Default risk – if an event of default occurs under the Bonds, or the Issuer fails to perform any obligation in relation to the Bonds, such event or failure may impact on the value of an investment in the Bonds, the transferability of the Bonds and the ability of a holder to recover amounts due under the Bonds.

Negative pledge

The Issuer must not incur or permit to exist any Encumbrance if to do so would result in a breach of the Priority Debt covenant. Where the Priority Debt covenant requires that Priority Debt must not exceed 30% of Total Tangible Assets. Priority Debt means all financial indebtedness that is secured by an encumbrance, other than a permitted encumbrance. Total Tangible Assets means, at any time, the total assets minus the aggregate book value of all intangible assets.

Events of default

Events of Default include:

  • Failure to Pay: Applicable with a cure period of 5 Business Days;
  • Cross Default: Applicable with a Threshold Amount of US$50,000,000;
  • Non-compliance with Financial Covenants: Applicable;
  • Breach of Other Obligations: Applicable;
  • Obligations Unenforceable: Applicable;
  • Ceasing to be Trustee and Responsible Entity: any Guarantor Trustee ceases to be the Trustee or Responsible Entity of a Guarantor Trust unless it is replaced by another DEXUS group member.
  • Enforcement or Attachment: Applicable, Threshold Amount is US$50,000,000;
  • Cessation of Business: Applicable to the Issuer or any Guarantor;
  • Insolvency: Applicable; or
  • Guarantor Trusts: Events impacting on the Guarantor Trustee’s right of indemnity, resettlement of Trust Property or a Guarantor Trust terminates and the capital vests.

Events of default

Events of Default include:

  • Failure to Pay: Applicable with a cure period of 5 Business Days;
  • Cross Default: Applicable with a Threshold Amount of US$50,000,000;
  • Non-compliance with Financial Covenants: Applicable;
  • Breach of Other Obligations: Applicable;
  • Obligations Unenforceable: Applicable;
  • Ceasing to be Trustee and Responsible Entity: any Guarantor Trustee ceases to be the Trustee or Responsible Entity of a Guarantor Trust unless it is replaced by another DEXUS group member.
  • Enforcement or Attachment: Applicable, Threshold Amount is US$50,000,000;
  • Cessation of Business: Applicable to the Issuer or any Guarantor;
  • Insolvency: Applicable; or
  • Guarantor Trusts: Events impacting on the Guarantor Trustee’s right of indemnity, resettlement of Trust Property or a Guarantor Trust terminates and the capital vests.

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