Debt Investors

Key debt data

Effective cost of debt (includes establishment and line fees)

Debt maturity profile as at 30 June 2024

During the year the Group entered into or amended interest-bearing facilities as below, with much of the activity relating to the refinancing of the acquired debt as part of the NPR acquisition:

> new $75 million seven-year institutional term loan, maturing in November 2030, with CBA appointed as the paying 
    agent.
> increased facility with CBA by $40 million to $150 million, with the facility extended to 31 July 2027.
> additional new facility of $100 million with SMBC, maturing on 24 January 2026.
> additional new facility of $85 million with WBC, maturing on 31 July 2026.
> new four year $50 million facility with Bank of China, maturing on 26 June 2028.

Current credit rating*

*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.
  

Debt

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.