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Highlights
Wesfarmers issues new Euro-denominated bonds under existing note programme
Funding to be allocated for general corporate purposes
Bonds to be listed on the Singapore Exchange and settled in early June
Wesfarmers Limited (ASX:WES), a diversified conglomerate within the consumer staples sector of the ASX 200, has announced the issuance of new senior unsecured Euro-denominated notes as part of its medium-term note initiative. The move comes as the company seeks to diversify its funding sources and take advantage of favourable conditions in international credit markets. Wesfarmers is a key constituent on multiple Australian indexes, including the S&P/ASX 100, S&P/ASX 50, and S&P/ASX 20.
Details of the Bond Issuance
The Euro-denominated issuance is being executed under the company’s broader medium-term note programme, which allows for total issuance up to a defined cap. These latest bonds are scheduled to mature in the early part of the next decade and will be listed on the Singapore Exchange. They are structured to convert into Australian dollars upon issuance through a currency swap mechanism.
The pricing for this issuance was finalised based on the prevailing seven-year Euro mid swap rate, with a set margin above that benchmark. The company confirmed that the funding raised will be allocated for general corporate purposes.
Global Demand and Market Reception
Wesfarmers reported a strong response from the international debt market, particularly from institutional entities across Europe and Asia. The issuance round was oversubscribed, indicating a high level of confidence from offshore market participants in Wesfarmers’ financial profile and long-term strategy.
Company Chief Financial Officer noted the effectiveness of accessing global capital pools to support the firm’s ongoing financial flexibility and balance sheet management. The issuance further cements Wesfarmers’ presence in global fixed-income markets.
Listing and Settlement
Settlement of the new bond issuance is scheduled for early June. The securities will be exclusively offered to eligible parties, excluding retail investors in Australia. Listing on the Singapore Exchange positions the notes within a globally recognised platform, facilitating visibility and transparency in the secondary market.
The execution of the offering was supported by a group of leading global financial institutions acting as joint lead managers. This consortium included Barclays, BNP Paribas, Goldman Sachs, SMBC Bank, and Société Générale, all of which played a key role in structuring and marketing the bonds.
Broader Context in Capital Markets
This bond issuance is aligned with the growing trend of Australian corporations seeking international financing avenues to broaden their debt portfolios and access competitive funding rates. For Wesfarmers, tapping the Eurobond market complements its existing domestic funding channels and reinforces its commitment to strategic capital management.
The company continues to operate across a range of industries, including retail, industrials, and chemicals, with a financial strategy designed to sustain long-term operational resilience and growth. The latest move in the international bond market reflects a proactive approach in leveraging global financing options under a clearly defined programme.
