Investor Centre

Debt Investors

Key debt data








Gross debt (interest-bearing loans and borrowings) (A$m)  468.5 455.6 474.7 503.2 412.7 457.6
Cash at bank and on deposit (A$m)  16.8 11.9 33.1  64.2 17.9  14.2
Gross debt less cash at bank and on deposit (A$m)  451.6 443.7 441.6  439.0 394.8  443.4
Net finance costs (includes non-interest expenses (A$m) 16.5 13.7 14.9  15.4 19.1  21.4
Net debt to equity (%)  18.8 17.8 20.9  22.3 21.1  24.2
Gearing (debt to total assets) (%)  15.8 15.1 17.7  19.7 17.3  19.3


Effective cost of debt (includes establishment and line fees)


Debt maturity profile as at 31 December 2023

1 During the year, the Trust restructured its debt facility with Sumitomo Mitsui Banking Corporation. In March 2021 the Trust issued a new fixed term seven-year bond of $100 million which matures in March 2028. The funds from this bond issue were used to repay the $100 million debt facility with Sumitomo Mitsui Banking Corporation which was due to expire in May 2024. The debt facility with Sumitomo Mitsui Banking Corporation was restructured and replaced with a $110 million five-year forward start cash advance term facility, with an effective start date in March 2022, with drawdown likely in April 2022. This restructured facility has been established to repay the $110 million fixed term five-year corporate bond that matures in May 2022

Current credit rating*



Long term


Short term

Standard and Poor's




Moody's Investors Service




*This credit rating is provided for use by wholesale investors only and must not be used, and BWP Trust does not intend or authorise its use, in the support of or in relation to the marketing of financial products to retail investors in Australia


Bank debt

BWP Trust has revolving cash advance facilities for varying amounts with its long term relationship banks. Whilst these facilities have fixed maturity dates, for two of the three current facilities, the terms of these facilities allow for the maturity period to be extended by a further year each year subject to the amended terms and conditions being accepted by both parties. The pricing on the continuing facilities is generally reset to current market levels on an annual basis.

Domestic debt capital markets

Program Documentation

Interest Rate Management

The Trust undertakes interest rate hedging to manage its exposure to the adverse effects on its finances from fluctuations in interest rates. The objective of implementing interest rate hedging is to:

  • reduce the risk of adverse impact to BWP's earnings from rising interest rates; and
  • improve the certainty of funding costs for planning purposes and financial analysis

by converting the variable interest rates applying to a portion of borrowings into fixed interest rates.

Subject to amendment from time to time, the Board has set the following targets for managing interest rate hedging:

  • The level of interest rate hedging of actual borrowings should be between 50 per cent and 75 per cent. This range is considered to provide a balance of certainty and flexibility.
  • The weighted average duration of the hedging programme (including delayed start swaps) should be between three years and seven years to provide sufficient certainty of funding costs in the short term and allow for better matching of debt funding, hedging and income streams under property leases.

Details of the Trust's current interest rate hedging profile can be found in the most recent annual report.