20 April 2018

ASX/Media release

Stockland has secured new, long-dated European medium term note (MTN) funding to the value of EUR 300 million (AU $475 million equivalent). The issue is for an eight year term, with settlement expected on 27 April, 2018.

The transaction was priced on an Australian dollar basis of approximately bank bill swap rate (BBSW) +170bps (exclusive of fees).

Stockland’s Chief Financial Officer, Tiernan O’Rourke said, “This transaction is a continuation of Stockland’s success in diversifying its funding sources, with the deal attracting over 50 new accounts across a broad range of European and Global investors.

“Stockland’s ability to continue to obtain competitive interest rates and long tenors from global debt markets is supported by our stable A- / A3 credit ratings and diversified business model.”

The transaction will reduce the Group’s overall weighted average cost of debt, while lengthening its weighted average debt maturity.

Stockland’s pro forma weighted average debt maturity will increase from 5.1 years as at 31 December 2017, to 5.9 years, taking into account this funding and the USPP transaction executed in January 2018.