Dexus Successfully Prices A$500 Million Subordinated Notes

Dexus Finance Pty Limited has announced the successful pricing of A$500 million subordinated notes in Australia's fixed income market. This issuance met robust demand from both new and existing investors. The notes have an implied yield of 5.48%, structured across two tranches. The first tranche, A$250 million in 30-year floating rate notes, has a non-call period of 5.25 years with a margin of 1.75% over the 3-month BBSW. The second tranche, also A$250 million in 30-year fixed rate notes, is set at an initial coupon of 6.30% which has been swapped back to floating, reflecting a margin of 1.85% over the same benchmark.

Slated for settlement on 10 December 2025, these notes aim to enhance Dexus's financial flexibility and diversify funding sources while extending its debt maturity profile. They also receive 50% equity credit from major rating agencies. This strategic move supports Dexus's pursuit of further investment opportunities while maintaining financial discipline.