On 9 October 2026, Scentre Group (ASX:SCG) announced that it priced US$750 million (A$1,079 million) of 10-year guaranteed senior notes with a fixed coupon of 6.20% in the United States market on 8 October 2026. The issue was made under US Rule 144A and Regulation S.

Terms of the notes

The notes have a 10-year term and a fixed coupon of 6.20%. The announcement states that principal and interest payment obligations have been swapped to a floating rate Australian dollar Liability reflecting a Margin of 141 basis points over 3-month BBSW. Settlement is scheduled for 16 October 2026.

The announcement is marked not for distribution or release in the United States or to US persons, and states that the notes have not been and will not be registered under the US Securities Act of 1933.

Use of proceeds and stated rationale

Proceeds will be used for general corporate purposes, including repaying existing indebtedness. Scentre said the transaction marks the group’s return to the US market and aligns with its Capital management strategy to diversify funding sources, extend the weighted average Maturity of Debt and reduce the overall weighted average cost of capital.

The announcement was authorised by the Chief Executive Officer. The release did not give the size of the group’s total debt, the maturities being repaid or the effect on gearing.

Sector backdrop

Large Australian property groups raise debt in domestic and offshore markets, often swapping foreign currency issues back into Australian dollars. Pricing is commonly expressed as a margin over a benchmark such as BBSW, which allows comparison across markets.

Rule 144A and Regulation S offerings are private placements to qualified institutional buyers and non-US investors, which do not require SEC registration.

Risks shareholders should weigh

The notes are fixed rate in US dollars but swapped to a floating Australian dollar liability, so the group’s interest cost will move with BBSW over the term. The 141 basis point margin applies over that reference rate.

The announcement does not state which existing debt will be repaid or how the issue changes the maturity profile, so the effect on refinancing risk cannot be assessed from the release.

Settlement is not until 16 October 2026, and the group’s funding costs, property values and retail conditions remain factors outside this announcement. The currency swap introduces counterparty exposure.

What’s next

Settlement of the notes is scheduled for 16 October 2026. Shareholders may wish to watch for further announcements on debt maturities, use of proceeds and the group’s reported funding costs.