Wesfarmers Ltd


Wesfarmers Ltd

Latest price

$ 102.14

  • ASX code
  • Maturity date
  • Capital structure
    Senior Unsecured
  • Coupon type
  • Coupon P.A
  • Issue Date
  • Next ex. distribution date
  • Next interest payment date
  • Payment frequency


Wesfarmers Limited


Not Applicable

Base terms

$4,000,000,000 Debt Issuance Programme dated 3 October 2012 (as supplemented on 22 February 2013)

Pricing supplement

Dated 11 March 2013

Nature of the bonds

The Bonds are, unsubordinated and unsecured obligations of the Issuer and rank at least equally with all other unsecured and unsubordinated obligations of the Issuer except liabilities mandatorily preferred by law.

Issue size


Interest rate

4.75% per annum, payable semi-annually (in two coupons of 2.375%) in arrears on 12 March and 12 September in each year, including the Maturity Date.

Bond denomination


Repayment at the maturity date

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

Early Redemption by Issuer

Yes, for tax reasons.

Early Redemption by Bondholder

There is a Change of Control and a ratings downgrade of the Issuer below a certain rating, then holders of the Bonds can “Put” the Bonds back to the Issuer at a price of 101%.

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

  • Wesfarmers’ financial performance and rating – a change in Wesfarmers’ financial condition or rating may impact on the market value and the transferability of the Bonds;
  • Currency risk – the Issuer is subject to some exchange rate risk, which may affect the costs of imports or the proceeds from exports and negatively affect its financial performance;
  • Commodity price risk – the Issuer’s profitability depends, in part, on commodity prices in a variety of industries including coal, gas, chemicals and fertilisers, all of which can fluctuate in price and impact on the Issuer’s financial performance;
  • 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 Bond;
  • Interest rate risk – the value of Fixed Rate Bonds may be adversely affected by movements in market interest rates;
  • Litigation risks – 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; In assessing potential default risk, a bondholder should consider the periodic and continuous disclosures made by the Issuer.

Negative Pledge

Wesfarmers will not create any Security Interest on the Property of the Issuer or any Subsidiary or on any shares of stock in, or of any Subsidiary, in each case, to secure any present or future Indebtedness without effectively providing that the Bonds shall be secured equally and rateably with such secured Indebtedness, so long as such Indebtedness shall be so secured.

Exceptions include:

  • any Security Interest existing at the Issue Date;
  • a Security Interest arising by operation of law provided in the ordinary course of business;
  • any Security Interest which exists at the time of acquisition on or over any asset acquired;
  • any Security Interest given in the course of Project Financing;
  • any Security Interest which in an aggregate amount of all other Indebtedness of Wesfarmers and its Subsidiaries does not at any time exceed 15 per cent. of Total Assets.

Events of Default

Events of Default include:

  • Failure to Pay: Applicable with a cure period of 30 days in respect of interest payments;
  • Breach of Other Obligation: Applicable;
  • Cross Default: Applicable, Threshold Amount is A$50,000,000.
  • Enforcement or Attachment: Applicable, with a Threshold Amount of A$50,000,000;
  • Loss of Licence/Authorisation: Applicable
  • Enforcement or Attachment: Applicable, with a Threshold Amount of A$50,000,000;
  • Voluntary Winding Up: Applicable;
  • Insolvency: Applicable;
  • Scheme of Arrangement/Compromise: Applicable.

Coupon Schedule to Maturity

  • 12 March 2017
  • 12 September 2017
  • 12 March 2018
  • 12 September 2018
  • 12 March 2019
  • 12 September 2019
  • 12 March 2020 - Maturity Date

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